What is included in the definition of 'Gross Revenue' for a Baya Bar franchise?

According to Baya Bar's 2024 Franchise Disclosure Document, gross revenue includes the redemption amount of purchases made by gift card. However, the initial purchase of a gift card is not included in gross revenue. Franchisees must furnish Baya Bar with a report showing the franchisee's gross revenue at or from the franchised business weekly. This report is due on the Tuesday following the close of each calendar week, which runs from Monday through Sunday.

This definition of gross revenue is important because it directly impacts the royalty fees and brand fund contributions that a Baya Bar franchisee must pay. These fees are calculated as a percentage of gross revenue, so accurately tracking and reporting this figure is essential for compliance with the franchise agreement. The distinction between gift card purchases and redemptions is a specific detail that franchisees must understand to ensure accurate reporting.

Baya Bar also reserves the right to establish a point of sale system (POS System) that franchisees may be required to use in the operation of the franchised business. At Baya Bar's option, the franchisee will submit the Gross Revenue Report by an electronic transfer of data via the POS System at the times and interims then specified by Baya Bar. Franchisees must adhere to the prescribed reporting methods and timelines to avoid penalties, such as late fees or interest charges. Failure to comply with these reporting requirements can be considered a material breach of the franchise agreement.