How does Bens Soft Pretzels define 'Gross Sales' for the purpose of financial reporting?

According to Bens Soft Pretzels' 2025 Franchise Disclosure Document, "Gross Sales" encompasses all sales or revenues, whether derived directly or indirectly from the business. This includes sales made on the premises and any monies collected at or away from the business location. The form of payment is irrelevant, covering cash, checks, credit and debit cards, trade credit, or other credit transactions. Gross Sales also include business interruption insurance proceeds and service charges collected in lieu of gratuity.

However, the definition of Gross Sales for Bens Soft Pretzels specifically excludes (i) sales taxes collected from customers that are then paid to the appropriate taxing authority, and (ii) the amount of all coupons redeemed. This means that franchisees do not need to include these amounts when reporting their gross sales figures to Bens Soft Pretzels for royalty or financial reporting purposes.

Understanding this definition is crucial for prospective Bens Soft Pretzels franchisees as it directly impacts royalty calculations and financial reporting obligations. Franchisees should ensure they accurately track and report their gross sales according to this definition to avoid discrepancies or potential disputes with Bens Soft Pretzels. It is also important to note that the FDD emphasizes the importance of relying on the written agreement, including the Operations Manual, for defining such terms.