What were the total royalties for Carbones Pizzeria?
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 |
|---|
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the royalties for the year ended October 31, 2024, totaled $980,131. This figure represents the service fees Carbone's Pizzeria receives from its franchised locations, calculated as a percentage of each location's weekly sales. These royalties are a primary revenue stream for the company.
In addition to royalties, Carbones Pizzeria also generates revenue from company-owned restaurant sales, advertising fund revenues, and rebate revenue. For the year ended October 31, 2024, company restaurant sales amounted to $726,642, advertising fund revenues were $289,604, and rebate revenue totaled $159,266. The total revenues for that year, combining all these sources, were $2,155,643.
Prospective franchisees should understand that the royalty payments are a recurring obligation, based on a percentage of their gross sales. These payments contribute to the franchisor's overall revenue and support the services and brand development that Carbones Pizzeria provides to its franchisees. Understanding the royalty structure and how it impacts profitability is crucial for any potential franchisee.