Does the definition of 'Gross Revenue' for All County include sales tax?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Gross Revenue" means the total revenue and other consideration from the Franchised Business, and whether from cash, check, or credit transactions, and including e-commerce transactions, but excluding Maintenance Revenue, excluding all federal, state or municipal sales, use or service taxes collected from customers and paid to the appropriate taxing authority, and excluding customer refunds, adjustments, credits and allowances actually made by the Franchised Business in compliance with our Methods of Operation.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, Gross Revenue does not include sales tax. Gross Revenue is defined as the total revenue and other consideration from the Franchised Business, whether from cash, check, or credit transactions, including e-commerce transactions.
However, the definition specifically excludes all federal, state, or municipal sales, use, or service taxes collected from customers and paid to the appropriate taxing authority. It also excludes customer refunds, adjustments, credits, and allowances actually made by the Franchised Business in compliance with All County's Methods of Operation.
This means that All County franchisees do not have to pay royalties or advertising fees on the portion of their revenue that represents collected sales taxes, which are then remitted to the government. This exclusion can be beneficial for franchisees as it lowers the base on which these fees are calculated, reducing their overall costs.