Does the Afuri Ramen Dumpling definition of 'Revenue' include sales from third-party delivery services?

According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the definition of "Revenue" includes sales from third-party delivery services. Specifically, the definition encompasses all receipts generated by the franchise from any source, including sales from delivery services, whether direct or via third-party services. This calculation is made without deducting any fees charged by these third-party delivery services.

This definition is important for prospective franchisees because the Royalty Fee, as detailed elsewhere in the FDD, is calculated as a percentage of monthly Revenue. By including third-party delivery service sales in the Revenue calculation, Afuri Ramen Dumpling ensures that franchisees pay royalties on all sales, regardless of how the sales are generated. This could impact the overall profitability of the franchise, as the franchisee is responsible for paying the delivery service fees in addition to the royalty fee on the gross sales amount.

Furthermore, the FDD specifies that Revenue also includes receipts from sales, exchanges, services, and any other benefit or value received or deferred. It also clarifies that credit sales are calculated as of the date of sale, without any deduction for uncollected credit accounts. However, Revenue does not include bona fide credits for returns, promotional discounts, or amounts collected and paid to governmental authorities for sales taxes. The proceeds from any business interruption insurance or eminent domain recovery are included in Revenue. Franchisees must provide an itemized report of their Revenue for the preceding month in a form designated by Afuri Ramen Dumpling, along with all Royalty Fee, Advertising Fee, and other fee payments based on that Revenue.