What revenues are excluded from the Gross Revenue calculation for a Baya Bar franchise?

According to Baya Bar's 2024 Franchise Disclosure Document, the calculation of Gross Revenue excludes gift card purchases at the time of purchase. However, the gross revenue does include the redemption amount of purchases made by gift card.

This means that when a Baya Bar customer buys a gift card, the franchisee does not count that amount towards their gross revenue at that time. However, when the gift card is used to purchase items at the Baya Bar, the amount of the purchase made with the gift card is included in the gross revenue calculation.

For a prospective Baya Bar franchisee, this distinction is important for accurately reporting gross revenue, which is used to calculate royalty fees and brand fund contributions. Franchisees must track gift card sales and redemptions separately to ensure accurate reporting and avoid potential discrepancies or penalties.