What is included in the definition of 'Gross Sales' for a Bens Soft Pretzels franchise?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) "Gross Sales" means all sales or revenues, derived directly or indirectly from the Store, including on-premises sales and monies derived at or away from the Store, whether from cash, check, credit and debit card, trade credit or credit transactions, including business interruption insurance proceeds and service charges in lieu of gratuity, but excluding (i) sales taxes collected from customers and paid to the appropriate taxing authority and (ii) the amount of all coupons redeemed at the Store.
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Bens Soft Pretzels' 2025 Franchise Disclosure Document, "Gross Sales" encompasses all revenues derived directly or indirectly from the store. This includes sales generated on the premises and any monies obtained both at and away from the store. The form of payment, whether cash, check, credit and debit card, trade credit, or credit transactions, does not affect its inclusion in Gross Sales. Business interruption insurance proceeds and service charges in lieu of gratuity are also included.
However, there are specific exclusions from the definition of Gross Sales. Bens Soft Pretzels franchisees do not need to include sales taxes collected from customers and remitted to the appropriate taxing authority. Additionally, the amount of all coupons redeemed at the store is excluded from the Gross Sales calculation.
Understanding the components of Gross Sales is crucial for Bens Soft Pretzels franchisees, as it directly impacts the calculation of royalty fees (6% of Gross Sales) and advertising fund fees (up to 4% of Gross Sales, currently 1.5%). Accurate reporting of Gross Sales ensures compliance with the franchise agreement and proper payment of these ongoing fees. Franchisees should carefully track all sales and applicable exclusions to maintain accurate financial records.