Can Carbones Pizzeria use advertising funds for local and regional promotions?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
hose threshold to cease payments is less than $2,000,000.
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.
We currently use a design firm that produces our advertising materials. However, we may change this firm at any time. Advertising may be placed in local or regional traditional media. We also advertise on billboards and buses. We may also advertise over the Internet including social media channels. We do not guarantee that advertising expenditures from the Fund will benefit you or any other franchisee directly, on a pro rata basis, or at all.
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 local and regional promotions. The purpose of the fund is to develop marketing and advertising programs that benefit the Carbones Pizzeria brand. This includes using the funds for any purpose that promotes the franchise system and its trademarks.
Specifically, Carbones Pizzeria may use the advertising fund for the costs of preparing and conducting local, regional, or national media of their choice. This can include various advertising channels such as television, radio, internet, magazine, direct mail, newspaper, billboard, social media, and digital advertising. The funds can also be used for direct mail campaigns, other public relations activities, developing or hosting an internet web page, administering advertising programs, in-house staff assistance, related administrative costs, local and regional promotions, public relations campaigns, consumer and market research, and other advertising and marketing activities.
While Carbones Pizzeria can use the advertising fund for these purposes, the FDD also states that they do not guarantee that advertising expenditures from the fund will directly benefit any franchisee on a pro rata basis, or at all. Carbones Pizzeria has no obligation to spend any amount on advertising in a franchisee's specific territory. However, advertising monies collected but not used in one year will be carried over to the next year, and any interest earned by the funds will be used for advertising before any principal is used.