What is excluded from the definition of 'Gross Sales' for a Beggars Pizza restaurant?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 2. "Gross Sales" means all revenues generated from sales of all products and services conducted at, from, or with respect to the Restaurant, whether these sales are evidenced by cash, check, credit, charge, account, gift cards, loyalty cards, barter, or exchange, and the proceeds from any business interruption insurance policies. Gross Sales do not include the sale of products or services for which refunds have been made in good faith to customers, the sale of equipment or furnishings used in the operation of the Restaurant, revenue from the sale or issuance of System gift or loyalty cards (although revenue from the sale of products and services paid for with gift or loyalty cards is included), any reduction in revenue due to discounts or coupon sales, or any sales taxes or other taxes collected from customers and paid directly to the appropriate taxing authority.
Source: Item 6 — OTHER FEES (FDD pages 9–11)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, 'Gross Sales' encompasses all revenues from product and service sales at the restaurant, including cash, credit, gift cards, and even proceeds from business interruption insurance. However, the document explicitly excludes certain items from this definition.
Specifically, Beggars Pizza does not include in 'Gross Sales' any revenue from products or services for which refunds were legitimately given to customers. Also excluded are proceeds from the sale of equipment or furnishings used in the restaurant's operation. The initial sale of system gift or loyalty cards is not counted, though revenue from purchases made with these cards is included. Furthermore, any reduction in revenue due to discounts or coupon sales is excluded, as are sales taxes or other taxes collected from customers that are then remitted to the appropriate taxing authorities.
For a prospective Beggars Pizza franchisee, understanding this definition of 'Gross Sales' is crucial because it directly impacts the calculation of fees like the Brand Fund contribution, which is based on a percentage of monthly Gross Sales. Knowing what is included and excluded allows for accurate financial planning and reporting. Franchisees should pay close attention to these exclusions to ensure they are correctly calculating their Gross Sales and, consequently, their payments to Beggars Pizza.