definition

How does 7 Brew define 'Gross Sales' for the Measured Stores?

7_Brew Franchise · 2025 FDD

Answer from 2025 FDD Document

  • i. "Gross Sales" means the aggregate revenue received from selling, or providing services with respect to, beverages, food, other menu items, and merchandise, whether for cash or on credit, less (a) applicable sales taxes collected and remitted to the appropriate tax authority, (b) valid coupon credits and employee discounts deducted from revenue initially recorded as Gross Sales in an amount equal to 2% of such Gross Sales, and (c) revenue derived from selling or issuing gift cards and loyalty cards (although revenue derived from selling products and services to customers using those cards for payment is included in Gross Sales), but without deducting any other costs or expenses whatsoever.

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 61–73)

What This Means (2025 FDD)

According to 7 Brew's 2025 Franchise Disclosure Document, Gross Sales for the Measured Stores is defined as the aggregate revenue from selling beverages, food, other menu items, and merchandise, whether the payment is in cash or credit. However, this total revenue is subject to certain deductions.

Specifically, the Gross Sales figure is calculated after subtracting (a) applicable sales taxes that are collected and then remitted to the appropriate tax authority, (b) valid coupon credits and employee discounts, which are capped at 2% of the initial Gross Sales, and (c) revenue derived from the initial sale or issuance of gift cards and loyalty cards. It's important to note that while the initial sale of these cards is excluded from Gross Sales, any revenue generated when customers use these gift cards or loyalty cards to purchase products or services is included in the Gross Sales calculation.

Notably, the definition explicitly states that no other costs or expenses are deducted from the aggregate revenue when calculating Gross Sales. This means that expenses like rent, utilities, cost of goods sold, and labor costs are not factored into the Gross Sales figure. This provides a clear top-line revenue metric for evaluating the performance of 7 Brew locations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.