Is there an advertising fee for Carbones Pizzeria on Gross Sales over $2,000,000 in a year?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 6. OTHER FEES
| (Column 1) Type of Fee1 | (Column 2) Amount | (Column 3) Due Date | (Column 4) Remarks |
|---|---|---|---|
| Royalty | 4% of Gross Sales on the initial $1,000,000 in Gross Sales per year, 3% of Gross Sales on the next $1,000,000 per year and 2% of Gross Sales on any additional Gross Sales over $2,000,000 per year. | Payable monthly on 10th day following the month covered | Gross Sales includes all revenues from the operation of the Restaurant including any delivery or off premises sales. Gross Sales do not include sales tax or use tax, non-food vending machine sales, revenue from alcohol sales, and discounts. |
| Advertising | 1% of total Gross Sales up to $2,000,000 per year. No additional fee for Gross Sales over $2,000,000 in that year. | Payable monthly on 10th day following the month covered | |
| Late Fee | 1.5% per month from date due, not to exceed the highest rate of interest allowed by law. | Upon demand | This fee is imposed by us if you do not pay amounts you owe |
Source: Item 6 — OTHER FEES (FDD pages 8–10)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the advertising fee is structured as 1% of total Gross Sales up to $2,000,000 per year. The document explicitly states that there is no additional advertising fee for Gross Sales exceeding $2,000,000 in a given year. This means that once a Carbones Pizzeria franchise reaches $2,000,000 in annual gross sales, they will not be charged any further advertising fees, regardless of how much higher their sales may climb.
For a prospective Carbones Pizzeria franchisee, this is a notable benefit. It provides a ceiling on advertising costs, allowing the franchisee to more accurately forecast expenses as their business grows. This structure could incentivize franchisees to focus on increasing sales beyond the $2,000,000 mark, as they will not incur additional advertising costs.
In the franchise industry, advertising fee structures vary. Some franchises charge a percentage of all gross sales, while others have tiered systems or fixed amounts. Carbones Pizzeria's approach of capping the advertising fee at $2,000,000 in gross sales is a potentially attractive feature for franchisees anticipating high sales volumes. It's important for prospective franchisees to consider this aspect when evaluating the overall financial implications of investing in a Carbones Pizzeria franchise.