What is included in the definition of 'Gross Sales' for a Ben Jerrys franchise?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
"Gross Sales" means revenue from the sale of all Products and all other income, whether for cash or credit, of every kind and nature related to the Shop, Off-Premises Activities, On-Demand Sales and Mobile Vending, but excluding all sales taxes.
Source: Item 6 — OTHER FEES (FDD pages 23–28)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, "Gross Sales" is defined as the revenue from all product sales and any other income related to the shop. This includes cash or credit transactions from various activities such as shop sales, off-premises activities, on-demand sales, and mobile vending. However, the definition explicitly excludes all sales taxes collected.
For a prospective Ben Jerrys franchisee, understanding this definition is crucial because several fees, including royalties and advertising contributions, are calculated as a percentage of Gross Sales. Accurately tracking and reporting all income sources, while properly excluding sales taxes, is essential for compliance with the franchise agreement and to avoid potential discrepancies or penalties.
The broad scope of the Gross Sales definition—encompassing all income related to the shop's operations, regardless of the sales channel—means franchisees must maintain meticulous records of all transactions. This includes sales made within the physical shop, at external events, through online orders, and from any mobile vending activities. By understanding exactly what constitutes Gross Sales, a franchisee can more accurately forecast revenue, manage expenses, and ensure they are meeting their financial obligations to Ben Jerrys.