Does the Baya Bar definition of Gross Sales include taxes collected from customers?

According to Baya Bar's 2024 Franchise Disclosure Document, Gross Sales do not include taxes collected from customers. The FDD specifies that Gross Sales means the total selling price of all services and products, and all income of every other kind and nature related to the Shop, whether for cash or credit, regardless of collection in the case of credit.

For a Baya Bar franchisee, this means that when calculating royalties and marketing fund fees, they will not include the amount of sales tax they collect from customers and remit to the appropriate taxing authorities. This is a benefit to the franchisee, as it lowers the base upon which these fees are calculated. The franchisee must report Gross Sales weekly, and the royalty and marketing fund fees are withdrawn via electronic funds transfer.

The FDD also clarifies that cash shortages will not be considered in the determination of Gross Sales, as the amount will be determined based on the point of sale system records. If a franchisee fails to report Gross Sales, Baya Bar may debit the franchisee's account for 120% of the last royalty fee and marketing fund fees debited. If there are discrepancies between the debited fees and the actual fees owed, adjustments will be made in subsequent debits or credits.