What is excluded from the definition of 'gross revenues' for an Antioch Pizza Shop franchise?
Antioch_Pizza_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
- The term "gross revenues" means the entire gross receipts of every kind and nature from all products sold in or from the Antioch Pizza Shop Business or services performed by you including, without limitation, gross receipts from take-out orders, Delivery Services, catering and special events, without reserve or deduction for inability or failure to collect and excluding only the following: (i) the amount of any sales tax levied upon retail sales which is payable to the appropriate governmental authorities (and subsequently actually paid to such authorities); (ii) gratuities and tips; (iii) sales of unredeemed gift cards; and (iv) refunds made in good faith to customers in accordance with Franchisor's policies.
Source: Item 6 — Other Fees (FDD pages 13–17)
What This Means (2025 FDD)
According to Antioch Pizza Shop's 2025 Franchise Disclosure Document, gross revenues are defined as all gross receipts from products and services, including take-out orders, delivery services, catering, and special events, without any deductions for collection failures. However, certain items are specifically excluded from this definition.
The following are excluded from gross revenues: (i) sales tax levied upon retail sales payable to governmental authorities, (ii) gratuities and tips, (iii) sales of unredeemed gift cards, and (iv) refunds made in good faith to customers according to Antioch Pizza Shop's policies. These exclusions directly impact the royalty and marketing service fees, as these fees are calculated as a percentage of gross revenues.
For a prospective Antioch Pizza Shop franchisee, understanding these exclusions is crucial for accurate financial reporting and fee calculation. By excluding these items, the franchisee pays royalty and marketing fees on a net revenue figure, potentially lowering these costs. It is important for franchisees to maintain accurate records of these excluded items to ensure compliance with the franchise agreement and to correctly calculate royalty and marketing fees.