What was the total value of the inventory held by Carbones Pizzeria?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
Inventories consist primarily of items held at the restaurant and are valued at the lower of cost or net realizable value with cost determined using the first-in, first-out method.
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Carbones Pizzeria addresses inventory valuation but does not specify the total value of inventory held by the company. Instead, the FDD outlines the accounting methods used to determine the value of the inventory.
Specifically, the FDD states that inventories primarily consist of items held at the restaurant. These inventories are valued at the lower of either their cost or their net realizable value. The cost is determined using the first-in, first-out (FIFO) method. This means that the items that Carbones Pizzeria purchased first are assumed to be the first ones sold.
For a prospective franchisee, this information is useful for understanding how Carbones Pizzeria accounts for its inventory. However, without knowing the actual value of the inventory, it is difficult to assess the potential investment in supplies needed to open a franchise. Therefore, it would be prudent for a potential franchisee to ask Carbones Pizzeria for more specific details regarding typical inventory values and costs for a new franchise location.