Are gasoline and diesel sales included in the calculation of Gross Sales for an Aplus franchise?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
The following are not included in Gross Sales: (a) gasoline, diesel, and other fuel sales (if applicable, when operating a fueling station), (b) the amount of tax imposed by the United States or any city, county, state, or other governmental entity or agency or instrumentality thereof upon or with respect to retail sales of tangible personal property measured by a stated percentage of sales price or gross receipts, whether imposed upon you as a seller or upon the customer as a purchaser; (c) any deposits refunded to customers; (d) the sale price of returned merchandise by customers when the full sale price is refunded either in cash or credit, but this exclusion shall not apply in any instance when the customer, in order to obtain the refund, is required to purchase other property at a price equal to or greater than the amount charged for the property which is returned. For purposes of calculating Gross Sales, refund or credit of the entire amount shall be deemed to be given when the purchase price, less re-handling and restocking costs, is refunded or credited to the customer; (e) lottery and other commissions; (f) money orders (face value); (g) ATM income from fees, commissions, and rentals; (h) money order fees; (i) prepaid product sales and commissions on products from designated supplier; (j) federal, state and local excise taxes on cigarettes. For purposes of this excise tax exclusion, the calculation and deduction of the above taxes shall be calculated based on the tax rate that is in effect on the first day of the month, and is only applicable to cigarette products that are authorized as a part of the APLUS cigarette planograms; (k) car wash and automotive repairs; and (l) proprietary SUNOCO food service businesses and convenience store product offerings from which no royalty is collected in accordance with the terms of the applicable participation agreement.
Source: Item 6 — OTHER FEES (FDD pages 16–28)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, gasoline and diesel sales are explicitly excluded from the calculation of Gross Sales. This exclusion applies if the Aplus store operates a fueling station. Gross Sales are used to calculate royalty fees and other payments to Aplus, so this exclusion directly impacts the franchisee's financial obligations.
Gross Sales for an Aplus franchise include the total amount of sales and any merchandise inventory variation. This includes consideration received for sales from the Aplus store related to merchandise, services, equipment rentals, and merchandise inventory variation. Gross Sales do not allow deductions for the cost of goods sold, taxes paid for procuring goods, material costs, labor, service costs, interest, or transportation costs. Barter and exchange transactions are included at full retail value, as are proceeds from business interruption insurance and payments from vendors. Chargebacks are also not deducted from Gross Sales.
Besides gasoline and diesel sales, other items excluded from Gross Sales calculations are taxes collected on retail sales, customer deposits refunded, the sale price of returned merchandise when fully refunded, lottery and other commissions, money orders (face value), ATM income, money order fees, prepaid product sales and commissions, federal, state, and local excise taxes on cigarettes, car wash and automotive repairs, and proprietary SUNOCO food service businesses and convenience store product offerings from which no royalty is collected in accordance with the terms of the applicable participation agreement. This comprehensive list of exclusions provides clarity for franchisees in calculating their Gross Sales and associated royalty payments to Aplus.