What is the definition of 'Gross Revenue' for the purpose of calculating the All County Ad Fee?
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' is defined as the total revenue and other consideration received by the Franchised Business. This includes revenue from cash, check, credit transactions, and e-commerce transactions. However, Maintenance Revenue is specifically excluded from this definition.
Also excluded from the calculation of Gross Revenue are all federal, state, or municipal sales, use, or service taxes collected from customers that are then paid to the appropriate taxing authority. Additionally, customer refunds, adjustments, credits, and allowances actually made by the Franchised Business in compliance with All County's Methods of Operation are also excluded from Gross Revenue.
For a prospective All County franchisee, understanding this definition is crucial because the Ad Fee is calculated as the greater of one percent of Gross Revenue or $195. Accurately calculating Gross Revenue ensures compliance with the franchise agreement and avoids potential disputes with All County. Franchisees should pay close attention to what constitutes Maintenance Revenue and ensure they are properly excluding it from their Gross Revenue calculations.