What was the total amount Carbones Pizzeria spent on labor?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
tockholder's equity | $ 1,454,272 |
Consolidated Statement of Operations For the Year Ended October 31, 2024
| Royalties | $ 980,131 |
|---|---|
| Company restaurant sales | 726,642 |
| Advertising fund revenues | 289,604 |
| Rebate revenue | 159,266 |
| Total revenues | 2,155,643 |
| Cost of company restaurant sales | |
| Food and beverage | 226,979 |
| Labor | 624,395 |
| Direct expenses | 191,618 |
| Total cost of company restaurant sales | 1,042,992 |
| Operating expenses | |
| Marketing and advertising | 237,855 |
| General and administrative | 735,475 |
| Total operating expenses | 973,330 |
| Income from operations | 139,321 |
| Other income (expense) | |
| Interest income | 35,160 |
| Interest expense | (4,108) |
| Other income | (39,824) |
| Loss on disposition of property and equipment | (123) |
| Total other in |
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the company's expenses for labor during the year ended October 31, 2024, totaled $624,395. This figure represents the labor costs associated with the company-owned restaurant sales.
For a prospective franchisee, understanding the franchisor's labor costs in their company-owned restaurant can provide a benchmark. However, it's important to recognize that labor costs can vary significantly based on location, local minimum wage laws, employee skill levels, and management efficiency. A franchisee's labor costs may differ from those of the franchisor.
It is important for potential franchisees to conduct thorough due diligence, including creating a detailed business plan with realistic labor cost projections for their specific location. They should also inquire about the franchisor's recommendations or requirements for staffing levels and labor management practices to better estimate and control these expenses.