Does the 'Gross Revenue' definition for All County include revenue from cash transactions?
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, the definition of Gross Revenue includes revenue derived from cash transactions. 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, it excludes Maintenance Revenue, sales, use, or service taxes collected from customers and paid to the appropriate taxing authority, and customer refunds, adjustments, credits, and allowances actually made by the Franchised Business in compliance with All County's Methods of Operation.
This definition is important for All County franchisees because it clarifies what income is subject to royalty and advertising fees. By including cash, check, credit, and e-commerce transactions, All County ensures that all forms of revenue are accounted for when calculating these fees. However, the exclusion of Maintenance Revenue is notable, suggesting a different fee structure or accounting treatment for those specific services.
The exclusions from Gross Revenue, such as sales taxes and customer refunds, are standard practice in franchising. These exclusions prevent franchisees from paying fees on money that is collected on behalf of the government or returned to customers. Franchisees should pay close attention to the specific exclusions to accurately report their Gross Revenue and avoid overpayment of fees.
Prospective All County franchisees should carefully review the definition of Gross Revenue and its exclusions to fully understand their financial obligations under the Franchise Agreement. Understanding what constitutes Gross Revenue is essential for accurate financial reporting and compliance with the franchisor's requirements.