For Benjamin Franklin Plumbing, what sales are excluded from Gross Revenue?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
Gross Revenue does not include any sales taxes or other taxes you collect from customers and pay directly to the appropriate taxing authority. We reserve the right to modify our policies and practices regarding revenue recognition, revenue reporting, and the inclusion or exclusion of certain revenue from Gross Revenue as circumstances, business practices, and technology change.
Source: Item 6 — OTHER FEES (FDD pages 18–27)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, Gross Revenue is comprehensively defined but does have a specific exclusion. Gross Revenue encompasses all income from product and service sales, as well as any other income tied to the franchised business, regardless of whether it's received in cash, credit, trade, or barter. This includes amounts billed to insurance or government programs and revenue from any products or services using the franchise's resources, such as branded vehicles or employee services. Even if a franchisee uses third-party referrals, these fees or commissions do not reduce the Gross Revenue.
However, the 2025 FDD specifies one key exclusion from Gross Revenue for Benjamin Franklin Plumbing franchisees. Gross Revenue does not include any sales taxes or other taxes that the franchisee collects from customers and then remits directly to the appropriate taxing authority.
Benjamin Franklin Plumbing retains the right to modify its policies regarding revenue recognition, reporting, and the inclusion or exclusion of certain revenue from Gross Revenue as business practices and technology evolve. This means that while sales taxes are currently excluded, this could change in the future, so franchisees need to stay updated on any policy modifications.