Are sales taxes included in the Gross Sales calculation for a Bee Organized business?

According to Bee Organized's 2025 Franchise Disclosure Document, Gross Sales are calculated by subtracting sales tax, discounts, allowances, and returns from the total revenue. This means that the reported Gross Sales figure for a Bee Organized franchise does not include sales tax collected from customers.

For a prospective franchisee, this definition is important because it clarifies what revenue is used to calculate royalties and other fees payable to Bee Organized. Royalties are typically calculated as a percentage of Gross Sales, so excluding sales tax from the Gross Sales figure ensures that franchisees are not paying royalties on money that is simply being passed through to the government.

Furthermore, when evaluating the financial performance representations in Item 19 of the FDD, it is crucial to understand that the Gross Sales figures presented are net of sales tax. This allows for a more accurate comparison of revenue generated by different Bee Organized franchise locations, as it removes the variability of sales tax rates across different jurisdictions. Franchisees should always confirm their understanding of this calculation with Bee Organized during their due diligence.