factual

What was the total value of inventory held by Carbones Pizzeria?

Carbones_Pizzeria Franchise · 2025 FDD

Answer 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)

According to the 2025 FDD, Carbones Pizzeria's inventories primarily consist of items held at the restaurant. These inventories are valued at the lower of their cost or net realizable value. The cost is determined using the first-in, first-out (FIFO) method.

This accounting method means that Carbones Pizzeria assumes the first items purchased are the first ones sold. This can impact the reported value of inventory and cost of goods sold, especially during times of fluctuating prices. For a franchisee, understanding this valuation method is important for managing inventory and interpreting financial statements.

The FDD does not specify the exact total value of inventory held by Carbones Pizzeria. Franchisees may want to inquire about typical inventory levels and values for a store during their due diligence process to better understand the potential investment in supplies and food.

While the FDD explains the method Carbones Pizzeria uses to value its inventory, it does not provide specific figures for inventory value. Prospective franchisees should ask Carbones Pizzeria for more detailed information on typical inventory costs and levels to help them plan their initial investment and ongoing operational expenses.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.