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Are sales of alcohol included in the gross sales calculation for Carbones Pizzeria royalty payments?

Carbones_Pizzeria Franchise · 2025 FDD

Answer from 2025 FDD Document

Notwithstanding the foregoing, sales of alcohol by Franchisee at a facility which is a "fully licensed liquor establishment" licensed to sell alcohol shall not be included in the calculation of Gross Sales.

Source: Item 23 — RECEIPTS (FDD pages 30–116)

What This Means (2025 FDD)

According to the 2025 Carbones Pizzeria Franchise Disclosure Document, sales of alcohol are generally excluded from gross sales calculations for royalty payments under specific conditions. Specifically, if the Carbones Pizzeria franchise operates as a "fully licensed liquor establishment" legally authorized to sell alcohol, then those alcohol sales are not factored into the gross sales figure used to calculate royalties.

This provision offers a potential financial benefit to franchisees who obtain the necessary licenses to operate a fully licensed liquor establishment. By excluding alcohol sales from the royalty calculation, franchisees can increase their revenue without incurring additional royalty fees on those specific sales. This could be particularly advantageous in locations where alcohol sales constitute a significant portion of the restaurant's overall revenue.

However, it's important to note that Carbones Pizzeria requires franchisees to obtain prior written approval before offering or selling alcoholic beverages. This approval is at the discretion of Carbones Pizzeria and may be subject to additional requirements such as completing extra training or obtaining additional insurance. Therefore, franchisees should carefully consider these requirements and the potential costs associated with obtaining and maintaining a liquor license before deciding to pursue alcohol sales at their Carbones Pizzeria location.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.