What is included in the definition of 'Gross Sales' for calculating Bb.Q Chicken Royalty Fees?

• 4.2.4 For the purposes of determining the Royalty Fees to be paid hereunder, "Gross Sales" shall mean the total selling price of all services and products and all income of every other kind and nature related to the Franchised Business (including, without limitation, income and fees related to catering, carry-out and to the use of third-party delivery services, and any sales or orders of food products or food preparation services provided from or related to the Franchised Business), whether for cash or credit and regardless of collection in the case of credit. In the event of a cash shortage, the amount of Gross Sales shall be determined based on the records of the electronic cash register system and any cash shortage shall not be considered in the determination. Gross Sales shall expressly exclude the following:
  • (a) Receipts from the operation of any public telephone installed in the Restaurant, or products from vending machines located at the Restaurant, except for any amount representing your share of such revenues;
  • (b) Sums representing sales taxes collected directly from customers, based upon present or future laws of federal, state or local governments, collected by you in the operation of the Franchised Business, and any other tax, excise or duty which is levied or assessed against you by any federal, state, municipal or local authority, based on sales of specific merchandise sold at or from the Franchised Business, provided that such taxes are actually transmitted to the appropriate taxing authority; and
  • (c) Proceeds from isolated sales of trade fixtures not constituting any part of your products and services offered for resale at the Franchised Business nor having any material effect upon the ongoing operation of the Franchised Business required under this Agreement.

We may, from time to time, authorize certain additional items to be excluded from Gross Sales. Any such permission may be revoked or withdrawn at any time in writing by us in our discretion. In addition to the foregoing, the following are included within the definition of Gross Sales:

• i. The full value of meals furnished to your employees as an incident to their employment except that the value of any discounts extended to such employees may be credited against Gross Sales during the Accounting Period in which the meals were furnished for the purpose of determining the amount of Gross Sales upon which the Royalty Fee is due; and
• ii. All proceeds from the sale of coupons, gift certificates or vouchers; provided that at the time such coupons, gift certificates or vouchers are redeemed the retail price thereof may be credited against Gross Sales during the Accounting Period in which such coupon, gift certificate or voucher is redeemed for the purpose of determining the amount of Gross Sales upon which the Royalty Fee is due.

Source: Item 23 — RECEIPTS (FDD pages 62–283)