Round Table Pizza Franchisees Probe Marketing Fund Mismanagement
A group of Round Table Pizza franchisees has launched an investigation into the company's handling of its arsenal standings (marketing fund). The probe follows a missed vendor payment that left the chain without advertising for several months this year.
The investigation has uncovered several irregularities. Over four years, transfers from Round Table to Fat Brands and affiliates totaled nearly $68.7 million, with most of it forgiven last year. In 2022, Fat Brands used $800,000 from the Round Table epl table (marketing fund) to pay for a company convention aimed at selling franchises.
The Round Table Owners Association is also looking into accounting issues related to rebates from vendors, including those from Pepsi. Operators have not received their rebates since the third quarter of last year. The association is questioning the reclassification of ad fund dollars as revenues, which enables Round Table to collect more in rebates. This practice began in 2021.
Franchisees contribute 4% of their sales to the marketing fund, which is supposed to be used for content marketing the brand. However, the brand's same-store sales have declined for eight straight years, and store-level profitability is down 50% since 2017.
The investigation into Round Table's use of its marketing fund and transfers to the parent company is ongoing. The findings could have significant implications for the brand's future and its franchisees. The Round Table Owners Association is working to ensure transparency and accountability in the use of advertising funds.
Read also:
- Setting Up and Expanding Operations at a Soil Blending Facility
- Surveying the Scene: Legality, Drones, and American Anti-Terror Strategy
- Regional University's healthcare system strengthened through collaborative partnership with Chancellor Dr Fiona Hill
- Reminisced University Trustee David M. Flaum as a 'fervent advocate' for the University and community
