What is included in the definition of 'Gross Sales' for a Bens Soft Pretzels store?

According to Bens Soft Pretzels' 2025 Franchise Disclosure Document, "Gross Sales" encompasses a broad range of revenues generated by the store. This includes all sales or revenues derived directly or indirectly from the store, whether from on-premises sales or from activities away from the store. The method of payment is not a factor, as revenues from cash, check, credit and debit card, trade credit, or credit transactions are all included. Business interruption insurance proceeds and service charges in lieu of gratuity are also part of Gross Sales.

However, there are a couple of specific exclusions from the Gross Sales definition. Sales taxes collected from customers and then paid to the appropriate taxing authority are excluded, as these are pass-through funds and not considered revenue for the business. Additionally, the amount of all coupons redeemed at the store is also excluded from Gross Sales, which means franchisees don't pay royalties on the discounted portion of sales when coupons are used.

For a prospective Bens Soft Pretzels franchisee, understanding this definition is crucial because royalty fees are typically calculated as a percentage of Gross Sales. A clear understanding of what constitutes Gross Sales ensures accurate reporting and payment of royalties to the franchisor. Franchisees should pay close attention to the inclusions and exclusions to properly manage their financial obligations under the franchise agreement.