Are gasoline and diesel sales included in the Gross Sales calculation 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
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 can significantly impact the overall financial performance of the franchise for locations with fuel sales.
Gross Sales for an Aplus franchise include the total amount of sales and any merchandise inventory variation, including the total amount of consideration, valued in U.S. currency, received for sales from or in the Aplus store. This includes sales from merchandise, services, equipment rentals, and merchandise inventory variation. Gross Sales also encompass barter and exchange transactions, business interruption insurance proceeds, and payments received from vendors. Chargebacks are not deducted from Gross Sales.
The exclusion of gasoline and diesel sales from Gross Sales means that Aplus franchisees will not pay royalty fees on these fuel sales. This is a common practice in the convenience store and gas station franchise industry, as fuel margins are typically lower than those for other products sold in the store. Excluding fuel sales from the royalty calculation allows franchisees to remain competitive in the fuel market while still operating a profitable business. Prospective franchisees should carefully consider the impact of this exclusion on their overall revenue and profitability projections, especially if they plan to operate a fueling station.