What items are specifically excluded from the definition of 'Revenue' for Afuri Ramen Dumpling?

According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the definition of "Revenue" specifically excludes certain items. Revenue includes all receipts generated by the franchise from any source, including sales, exchanges, services, and sales from delivery services (even when using third-party delivery services without deducting their fees). Credit sales are calculated on the date of sale, without any deduction for uncollected accounts.

However, the following items are excluded from the calculation of Revenue: bona fide credits for returns, promotional discounts, and amounts collected and paid to governmental authorities for sales tax, retailer's occupation tax, or similar taxes. The proceeds from any business interruption insurance or eminent domain recovery you receive are included in "Revenue."

This definition is important because many fees payable to Afuri Ramen Dumpling, such as the Royalty Fee, are calculated as a percentage of Revenue. Therefore, understanding what is included and excluded from Revenue is crucial for accurately calculating these fees and managing the franchise's finances. Franchisees should pay close attention to these exclusions to ensure accurate reporting and avoid potential discrepancies or disputes with Afuri Ramen Dumpling.