Can Carbones Pizzeria use the Advertising Fund to purchase consumer insights?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
r social networking or media sites or tools.
- c. Franchisor will maintain and administer the Carbone's Pizza Advertising Fund. Franchisee will pay Franchisor monthly, at the same time as it makes its Royalty payment, an "Advertising Fee" of one percent (1%) of monthly Gross Sales. The Advertising Fee shall not be due on Gross Sales exceeding $2,000,000 in any calendar year.
- d. Franchisor may use monies in the Carbone's Pizza Advertising Fund for any purpose that promotes the Carbone System, and its Names and Marks, including the creation, production and placement of consumer advertising; purchase of marketing related technology platforms, such as social media management, market research, consumer insights and analytics; costs of preparing and conducting local, regional or national media of Franchisor's choice, including: television, radio, internet, magazine, direct mail and newspaper, billboard, social media and digital advertising, direct mail campaigns, and other public relations activities; developing and/or hosting an internet web page or similar activities; administering advertising programs, direct mail and other media advertising; in-house staff assistance and related administrative costs; local and regional promotions; public relations campaigns including the cost of retaining public relations firms; consumer and market research (including surveys and sampling); and other advertising and marketing activities.
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the franchisor has the authority to use the Advertising Fund for purchasing consumer insights. The franchisor collects an Advertising Fee of one percent (1%) of monthly Gross Sales from franchisees, although this fee is not applied to Gross Sales exceeding $2,000,000 in any calendar year.
The funds within the Carbone's Pizza Advertising Fund can be used for various purposes that promote the Carbone System and its trademarks. These include creating and placing consumer advertising, investing in marketing-related technology platforms like social media management, and conducting market research, including consumer insights and analytics.
This means that Carbones Pizzeria franchisees contribute to a centralized fund that the franchisor manages, and a portion of these funds can be strategically allocated to understanding consumer behavior and preferences. This can help the franchisor make informed decisions about marketing strategies, product development, and overall brand management, which should benefit the entire franchise system.