Is there an assurance that a new Carbones Pizzeria franchisee will achieve the same sales as existing restaurants?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Some Carbone's Restaurants have sold these amounts. Your individual results may differ. There is no assurance that you'll sell as much.
Other than the preceding financial information, we do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, we ask that you report it immediately to the franchisor's management by contacting Thomas Carbone, 680 East Seventh Street, St. Paul, Minnesota 55106, telephone: (651) 771-5553, the Federal Trade Commission, and the appropriate state regulatory agencies.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 26–27)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, there is no assurance that a new franchisee will achieve the same sales as existing restaurants. The FDD includes financial performance representations based on the gross sales of existing franchised restaurants for the 12-month period ending December 31, 2024. However, the document explicitly states that individual results may differ and there is no guarantee of achieving similar sales figures. The sales information is derived from franchisee reports or point-of-sale system data. Substantiation for this information is available upon reasonable request.
The financial performance representation includes data from 32 franchised restaurants, broken down by restaurant type: fast casual, express, and full-service. For the 7 fast casual restaurants reporting, the annual gross sales ranged from $300,000 to $1,000,000. The 8 express restaurants reported sales between $300,000 and $650,000. The 17 full-service restaurants had the highest range, from $600,000 to $2,500,000. These figures exclude revenue from alcohol sales, sales tax, use tax, non-food vending machine sales, and discounts.
The FDD also notes that sales volumes can vary significantly due to factors like local demographics, competition, traffic flow, economic conditions, and the franchisee's own business abilities. Carbones Pizzeria does not authorize its employees or representatives to make any representations about a franchisee's future financial performance. If a prospective franchisee receives any financial performance information or projections outside of the FDD, they are instructed to report it to Carbones Pizzeria's management, the Federal Trade Commission, and appropriate state regulatory agencies. This is a common disclaimer in franchise agreements, as the franchisor cannot guarantee a new franchisee's success.