Does the definition of Gross Sales for Bb.Q Chicken include third-party delivery fees?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
For the purposes of determining the royalties to be paid under the Franchise Agreement, "Gross Sales" means the total selling price of all services and products and all income of every other kind and nature related to the Franchised Business, whether for cash or credit and regardless of collection in the case of credit, including, and including any third-party delivery fees. If a cash shortage occurs, the amount of Gross Sales will be determined based on the records of the point-of-sale system and any cash shortage will not be considered in the determination. Gross Sales expressly excludes taxes collected from your customers and paid to the appropriate taxing authority and customer refunds or adjustments. Gross Sales includes your revenues from the sale of alcoholic beverages. If a state or local law applicable to your Franchised Business prohibits or restricts in any way your ability to pay and our ability to collect Royalty Fees or other amounts based on Gross Sales derived from the sale of alcoholic beverages at the Franchised Business, then we will renegotiate the Royalty Fees and other provisions to provide the same basic economic effect to both us and you as otherwise provided in this Agreement, with a corresponding change to the definition of Gross Sales.
Source: Item 6 — OTHER FEES (FDD pages 15–21)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, Gross Sales includes third-party delivery fees. Bb.Q Chicken franchisees must pay royalties based on a percentage of Gross Sales. Gross Sales is defined as the total selling price of all services and products, and all income of every kind related to the franchised business. This includes any third-party delivery fees, whether the sales are for cash or credit.
Gross Sales for Bb.Q Chicken expressly excludes taxes collected from customers that are then paid to the appropriate taxing authority, as well as customer refunds or adjustments. Gross Sales does include revenues from the sale of alcoholic beverages.
The royalty fee and brand development fee will be withdrawn from your designated bank account by electronic funds transfer on the 15th of each month based on the Gross Sales for the previous month. If you do not report your Gross Sales, Bb.Q Chicken may debit your account for 120% of the last royalty fee and brand development fee that was debited. If you do not report revenues for any reporting period, then Bb.Q Chicken will collect 120% of the last Royalty Fee and Brand Development Fee collected and settle the balance the next period in which you report revenue.