When are gift certificates and vouchers included in the Gross Sales calculation for an Angry Chickz restaurant?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
s revenues achievable by Franchisee). Notwithstanding the foregoing, "Gross Sales" shall: (i) be calculated before reduction of any amounts (whether fees or expenses) from any third-party order or delivery applications, platforms, marketplaces, or the like, and other persons or vendors that may collect funds from a customer and remit a balance to you, unless we specify otherwise; and (ii) exclude the following: (1) sums representing sales taxes collected
directly from customers by you in the operation of your Restaurant, and any sales, value added or other tax, excise or duty charged to customers which is levied or assessed against you by any Federal, state, municipal or local authority, based on sales of specific goods, products, merchandise or services sold or provided at or from your Restaurant, provided that such taxes are actually transmitted to the appropriate governmental authority; (2) tips or gratuities paid to employees; (3) proceeds from isolated sales of furniture, fixtures and equipment (other than inventory); (4) bona fide refunds paid to customers (subject to any limitations in the Manuals); (5) uncollectible amounts, provided that uncollectible amounts cannot exceed 0.5% of Gross Sales in any fiscal year and subsequent collections of such amounts shall be included in Gross Sales when collected; and (6) and the retail price of any gift certificates and vouchers when sold but not yet redeemed.
Currently, it is our policy that we do not collect a Continuing Royalty or Brand Fee on commissions paid to third party marketplaces that we authorize you to use. To that end, to the extent included in "Gross Sales," we will permit you to deduct from "Gross Sales" 100% of the commission fees paid by you to thirdparty marketplace services that we authorize you to use. We may end this policy at any time and will begin to collect Continuing Royalty on such commissions upon 6 months prior notice to you.
(3) Interest begins from the date of the underpayment.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 48–51)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the retail price of gift certificates and vouchers are not included in gross sales when sold, but are included when redeemed. Gross sales for an Angry Chickz restaurant include the gross selling price of all goods and services, whether the payment is in cash, credit, redemption of gift cards, barter, donation, or other means of exchange. This encompasses all revenues received or receivable by the franchisee.
Specifically, gross sales include delivery and/or catering fees, service charges (excluding those disclosed as gratuities and paid to employees), and revenues from all sales at the restaurant, regardless of whether they comply with the franchise agreement. It also includes proceeds from business interruption insurance after deductibles, assuming full gross revenues are achievable by the franchisee.
Notably, gross sales are calculated before any reductions for fees or expenses from third-party order or delivery applications, unless Angry Chickz specifies otherwise. However, certain items are excluded from gross sales calculations, such as sales taxes collected from customers that are remitted to governmental authorities, tips paid to employees, proceeds from isolated sales of furniture, fixtures, and equipment, bona fide refunds paid to customers, and uncollectible amounts (up to 0.5% of gross sales in any fiscal year, with subsequent collections included when received).