Are properly documented refunds to customers included in the Gross Revenue calculation for a Baya Bar franchise?

Based on the 2024 Franchise Disclosure Document, the document does not specify whether properly documented customer refunds are deducted from gross revenue for Baya Bar franchises. The document only states that "Gross Revenue does not include gift card purchases, at the time of purchase, but Gross Revenue does include the redemption amount of purchases made by gift card."

Since the FDD does not address the treatment of customer refunds, it is important for prospective franchisees to seek clarification from Baya Bar regarding their policy on this matter. Understanding whether refunds are deducted from gross revenue is essential for accurately forecasting revenue and calculating royalty and brand fund contributions.

Without explicit information in the FDD, franchisees should directly ask Baya Bar about the specific accounting practices related to customer refunds and request this information in writing to ensure clarity and avoid potential disputes in the future.