For a Beef O Bradys franchise, what section of the agreement defines 'Adjusted Gross Sales'?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
| TERM | DEFINITION |
|---|---|
| Marketing | You currently must contribute to the Marketing Development Fund 2.3% of |
| Contributions | monthly Adjusted Gross Sales but may in the future be required to contribute |
| Section 12.1 | 2.5% of your monthly Adjusted Gross Sales. |
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
Based on the 2025 Beef O Bradys Franchise Disclosure Document, the term "Adjusted Gross Sales" is referenced within the context of marketing contributions. Specifically, franchisees are required to contribute a percentage of their monthly Adjusted Gross Sales to the Marketing Development Fund. Currently, this contribution is 2.3% of monthly Adjusted Gross Sales, but the franchisor retains the right to increase this to 2.5% in the future.
However, the FDD excerpt does not explicitly define what constitutes "Adjusted Gross Sales." This lack of a clear definition could lead to ambiguity or disputes regarding the calculation of sales figures used to determine marketing fund contributions.
A prospective Beef O Bradys franchisee should seek clarification from the franchisor regarding the precise definition of "Adjusted Gross Sales," including what revenue streams are included or excluded, and how deductions or discounts are treated in the calculation. Understanding this definition is crucial for accurately forecasting expenses and ensuring compliance with the franchise agreement.
It is important to note that while the term is used in the context of marketing contributions, the actual definition of "Adjusted Gross Sales" is not provided in this excerpt. A potential franchisee should clarify this with Beef O Bradys.