What is included in the definition of 'Gross Sales' for an Angry Chickz restaurant?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Notes:
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- "Gross Sales" means the gross selling price of all goods and services sold or provided in or from your Restaurant, including the total of all revenues received or receivable by you as payment, whether in cash, for credit, redemption of gift cards (or the like), or barter or received as donation, or other means of exchange (and, if for credit or barter, whether or not payment is received therefor), on account of any and all goods, merchandise, services or products sold or provided in or from your Restaurant or which are promoted or sold under any of the Marks, whether or not we have authorized such goods or services to be offered and sold, including; (a) delivery and/or catering fees, service charges, and the like (except service charges disclosed as gratuities and actually paid to employees); (b) revenues from sales of any nature or kind whatsoever, derived by you or by any other person or entity from your Restaurant; (c) revenues from sales of all products or services at your Restaurant, whether in compliance or in contravention of the franchise agreement; and (d) the proceeds of any business interruption insurance, after the satisfaction of any applicable deductible (but assuming the full gross 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.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 48–51)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, "Gross Sales" encompasses the gross selling price of all goods and services sold from the restaurant. This includes all revenues received, whether in cash, credit, gift card redemption, barter, donation, or other exchange methods, regardless of whether payment has been received. It covers all goods, merchandise, services, or products sold under the Angry Chickz brand, even if the franchisor hasn't specifically authorized them. Gross sales also include delivery and catering fees, service charges (excluding those disclosed as gratuities and paid to employees), revenues from any sales derived from the restaurant by any person or entity, revenues from all products or services sold at the restaurant (even if not in compliance with the franchise agreement), and proceeds from business interruption insurance after deductibles, assuming full gross revenues. Gross sales are calculated before any deductions for fees or expenses from third-party order or delivery applications, unless Angry Chickz specifies otherwise.
However, the 2025 FDD also specifies several exclusions from the definition of "Gross Sales" for an Angry Chickz restaurant. These exclusions include sales taxes collected directly from customers and remitted to the appropriate governmental authority, tips or gratuities paid to employees, proceeds from isolated sales of furniture, fixtures, and equipment (excluding inventory), bona fide refunds paid to customers (subject to manual limitations), and the retail price of gift certificates and vouchers when sold but not yet redeemed. Uncollectible amounts can be excluded, but they cannot exceed 0.5% of Gross Sales in any fiscal year, and subsequent collections of such amounts must be included in Gross Sales when collected.
For a prospective Angry Chickz franchisee, understanding this definition is crucial because royalties and other fees owed to Angry Chickz are typically calculated as a percentage of Gross Sales. Accurately tracking and reporting Gross Sales is therefore essential for compliance with the franchise agreement and for maintaining a transparent financial relationship with the franchisor. Franchisees should pay close attention to the inclusions and exclusions to ensure accurate reporting and avoid potential disputes.