Is there a limit to the Gross Sales amount on which the Carbones Pizzeria Advertising Fee is due?

According to Carbones Pizzeria's 2025 Franchise Disclosure Document, there is a limit to the gross sales amount on which the advertising fee is due. Franchisees are required to pay an advertising fee of 1% of their monthly gross sales. However, this advertising fee is not applied to any gross sales exceeding $2,000,000 within a single calendar year.

This provision offers a potential financial benefit to Carbones Pizzeria franchisees who achieve high sales volumes. Once a franchisee's gross sales surpass $2,000,000 in a calendar year, they will no longer be obligated to contribute 1% of further sales towards the advertising fund. This could significantly reduce their expenses and increase profitability for high-performing locations.

It's important for prospective franchisees to consider this cap in their financial projections. While reaching $2,000,000 in gross sales is a positive achievement, understanding the advertising fee structure is crucial for accurate financial planning. Franchisees should also be aware that the advertising fund is managed by Carbones Pizzeria, which has discretion over how the funds are used to promote the Carbone System.