What is included in the definition of 'Gross Sales' for a Bananas Smoothies Frozen Yogurt franchise?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2 Gross Sales means all revenues generated by the Franchised Business, including cash, check, credit charge, account or exchange from the sale of food or merchandise for service performed including catering and delivery, but excluding customer refund meals, use or excise taxes.
Source: Item 6 — OTHER FEES (FDD pages 17–19)
What This Means (2025 FDD)
According to Bananas Smoothies Frozen Yogurt's 2025 Franchise Disclosure Document, "Gross Sales" is defined as all revenue generated by the franchised business. This includes all cash, checks, credit charges, accounts, or exchanges from the sale of food or merchandise for service performed, including catering and delivery services.
However, the definition of Gross Sales for a Bananas Smoothies Frozen Yogurt franchise specifically excludes customer refund meals, use taxes, and excise taxes. This means that franchisees do not have to pay royalties or advertising fees on these particular revenues.
Understanding what constitutes Gross Sales is crucial for Bananas Smoothies Frozen Yogurt franchisees because several fees, including the royalty fee (5% of Gross Sales) and advertising fees (up to 3% of Gross Sales), are calculated based on this figure. Accurate reporting of Gross Sales is essential to avoid penalties, such as late fees or interest, and to maintain compliance with the franchise agreement.