Under what condition are alcohol sales excluded from gross sales calculations for Carbones Pizzeria?

According to Carbones Pizzeria's 2025 Franchise Disclosure Document, alcohol sales are excluded from gross sales calculations under a specific condition. If a Carbones Pizzeria franchisee operates a facility that qualifies as a "fully licensed liquor establishment" and is licensed to sell alcohol, then the revenue generated from those alcohol sales is not included when calculating the gross sales used to determine royalty fees. This means that the franchisee will not pay a percentage of their alcohol sales as part of their royalty payments to Carbones Pizzeria.

This exclusion can be financially beneficial for franchisees who operate such establishments, as it lowers the base upon which their royalty fees are calculated. However, it's important to note that this exclusion is specifically tied to the facility being a "fully licensed liquor establishment." This suggests that the exclusion may not apply if the franchisee's alcohol sales occur under a different type of license or permit.

Prospective franchisees should verify with Carbones Pizzeria what specific qualifications are required for a facility to be considered a "fully licensed liquor establishment" in their jurisdiction. They should also confirm whether this exclusion applies to all types of alcohol sales (e.g., beer, wine, liquor) or if there are any limitations. Understanding these details is crucial for accurately forecasting potential revenue and royalty obligations.