What sales are excluded from the 'Gross Sales' calculation for a Bens Soft Pretzels franchise?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. "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 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, 'Gross Sales' for a store encompasses all revenues derived directly or indirectly from the store. This includes on-premises sales and monies derived both at and away from the store, covering transactions made through cash, check, credit and debit card, trade credit, or credit transactions. It also incorporates business interruption insurance proceeds and service charges collected in place of gratuity.
However, the calculation of 'Gross Sales' for a Bens Soft Pretzels franchise excludes specific items. These exclusions are sales taxes collected from customers that are then paid to the appropriate taxing authority, and the amount of all coupons redeemed at the store.
For a prospective franchisee, understanding this definition is crucial because royalty fees are typically calculated as a percentage of gross sales. Therefore, accurately tracking and reporting sales, while properly accounting for the exclusions, will ensure compliance with the franchise agreement and avoid potential disputes with Bens Soft Pretzels.