What is included in 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 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 the franchisee. This includes, but is not limited to, gross receipts from take-out orders, Delivery Services, catering, and special events. This calculation is made without any reserve or deduction for inability or failure to collect payments.
However, there are specific exclusions from the gross revenue calculation. These exclusions include: (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.
Understanding what constitutes gross revenue is crucial for an Antioch Pizza Shop franchisee because several fees, such as the royalty fee (5% of gross revenues) and the marketing services fee (1% of gross revenues), are calculated as a percentage of this figure. Accurate reporting of gross revenues is essential for compliance with the franchise agreement and to ensure proper payment of fees to the franchisor.