What is excluded from 'Gross Sales' when calculating fees for a Ben Jerrys franchise?

According to Ben Jerrys's 2025 Franchise Disclosure Document, gross sales for the purpose of calculating royalty and marketing fees do not include sales taxes or other taxes that the franchisee collects from customers and then remits directly to the appropriate taxing authority.

This exclusion is beneficial for franchisees because it lowers the base revenue figure upon which the percentage-based royalty and marketing fees are calculated. In other words, a Ben Jerrys franchisee does not have to pay a percentage of the sales tax they collect to Ben Jerrys.

Franchisors typically charge royalties based on a percentage of gross sales, so defining 'gross sales' is a critical aspect of the franchise agreement. This ensures that franchisees are not paying fees on revenues that are simply pass-through collections for taxes.