Can Carbones Pizzeria use advertising funds for consumer and market research?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
The purpose of the fund is to develop marketing and advertising programs that benefit the Carbone's Pizza brand. This means we may use monies in the fund for any purpose that promotes the franchise system, and our trademarks, 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 our 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 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 15–19)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, the advertising fund can be used for consumer and market research. The purpose of the fund is to develop marketing and advertising programs that benefit the Carbone's Pizza brand. This includes using the monies in the fund for any purpose that promotes the franchise system and its trademarks.
Specifically, Carbones Pizzeria may use the advertising funds for the purchase of marketing-related technology platforms, such as social media management, market research, consumer insights, and analytics. It can also be used for consumer and market research, including surveys and sampling. This means that the franchisor has the discretion to allocate funds towards understanding consumer behavior and market trends to better inform advertising and marketing strategies for the Carbones Pizzeria brand.
While franchisees contribute to the advertising fund through a fee of 1% of monthly Gross Sales up to $2,000,000, there is no guarantee that advertising expenditures from the Fund will benefit any franchisee directly or on a pro rata basis. Carbones Pizzeria does solicit input from franchisees related to advertising methods and expenditures, but decisions are made based upon consensus of franchisees. The FDD also states that advertising monies not used in one year will be carried over to the next year, and any interest the funds earn will be used for advertising before any principal is used.