What sales period do the advertising fee royalties cover for Carbones Pizzeria?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
Accounts receivable for continuing franchise fee royalties from franchisees are due on or before the first day of each week for the sales during the preceding week and accounts receivable for advertising fee royalties from franchisees are due on or before Tuesday of each week for the sales during the preceding week. All receivables not received on time receive additional scrutiny from management and may be charged interest at rates up to 12% annually.
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, advertising fee royalties from franchisees are due on or before Tuesday of each week. These royalties cover sales made during the preceding week. This means that the advertising fees a franchisee pays each Tuesday are based on the sales they made in the week leading up to that Tuesday.
This weekly payment schedule ensures that Carbones Pizzeria receives advertising funds regularly, which can then be used to promote the brand. It also means that franchisees need to keep accurate records of their weekly sales to calculate the correct advertising fee royalty payments. The franchisor may charge interest at rates up to 12% annually for late payments.
For a prospective Carbones Pizzeria franchisee, this weekly payment system requires careful financial management. Franchisees must ensure they have sufficient cash flow to cover these royalties, along with other operating expenses. Understanding this payment schedule is crucial for budgeting and maintaining a healthy financial relationship with Carbones Pizzeria.