What sales period do the continuing franchise 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. Accounts receivable are occasionally written-off on a case by case basis.
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, continuing franchise fee royalties are based on weekly sales. Franchisees must pay these royalties on or before the first day of each week, covering sales from the previous week.
In addition to continuing franchise fees, Carbones Pizzeria franchisees also contribute to an advertising fund. These advertising fee royalties are due on or before Tuesday of each week, also covering sales from the preceding week.
Late payments of both continuing franchise fee royalties and advertising fee royalties may incur interest charges, potentially up to 12% annually. Management closely monitors overdue accounts, and receivables may be written off on a case-by-case basis.