What was the total amount of advertising fund revenues for Carbones Pizzeria?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
asury stock, at cost | (34,556) | | Total stockholder's equity | 941,550 | | | | | Total liabilities and stockholder's equity | $ 1,040,625 |
For the Year ended October 31, 2022 Consolidated Statement of Income
| Royalties | $ 827,392 | |----------------------------------|---------------| | Company restaurant sales | 615,202 | | Advertising fund revenues | 252,382 | | Rebate revenue | 159,151 | | Gross revenue | 1,854,127 | | Cost of company restaurant sales | | | Food and beverage | 223,206 | | Labor | 432,133 | | Direct expenses | 151,375 | | General and administrative | 83,610 890,324 | | Operating expenses | | | Marketing and advertising | 505,675 | | General and administrative | 506,834 | | Total operating expenses | 1,012,509 | | Loss from operations | (48,706) | | Other income | 269,196 | | Income before income taxes | 220,490 | | Income tax expense | 56,702 | | Net income | $ 163,788 |
M & T Pizza Incorporated and Subsidiaries Consolidated Statement of Changes in Stockholder's Equity For the Year ended October 31, 2022
Controlling interest in equity
| | Commo | on Stock | Additional paid in | Retained | Treasury | | |---------------------------|--------|----------|--------------------|------------|-------------|---------------| | | Shares | Amount | capital | earnings | Stock | Total | | | | | | | | | | Balance, October 31, 2021 | 2,500 | $ 2,500 | $266,117 | $ 543,701 | $ (34,556) | $ 777,762 | | Net income | | | | 163,788 | | 163,788 | | Balance, October 31, 2022 | 2,500 | $ 2,500 | $ 266,117 | $ 707,489 | $ (34,556) | $ 941,550 |
**Consolidated Statement of Cash Flows For the Year ended October 31,
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria FDD, the advertising fund revenues for the years ended October 31, 2022, October 31, 2023, and October 31, 2024, were $252,382, $268,596, and $289,604 respectively. These revenues are collected from franchisees as part of their royalty payments, as stipulated in the franchise agreements. The funds are specifically earmarked to enhance public recognition of the Carbones Pizzeria brand.
For a prospective Carbones Pizzeria franchisee, this indicates the level of investment being made into marketing and advertising initiatives. These figures can help a franchisee understand the potential scale and scope of advertising efforts that support the brand. It is important to note that while franchisees contribute to this fund, the franchisor controls how the money is spent to promote the brand.
It is also worth noting that the advertising expenses incurred by Carbones Pizzeria were $506,000 for the year ended October 31, 2022, $278,545 for the year ended October 31, 2023, and $237,855 for the year ended October 31, 2024. While the advertising fund revenues represent the contributions from franchisees, the actual advertising expenses reflect the total spending on marketing and advertising activities, which may include additional contributions from the franchisor or other sources. A prospective franchisee may want to inquire about the difference between the advertising fund revenues and the total advertising expenses to understand the full scope of the franchisor's investment in marketing and advertising.