How is 'Adjusted Gross Sales' defined for a Better Blend franchise?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- "Adjusted Gross Sales" means the total dollar amount of all sales generated through the Business for a given period, including, but not limited to, payment for any services or products sold by Franchisee, whether for cash or credit, and any proceeds of business interruption insurance. Adjusted Gross Sales does not include (i) coupons, discounts, and bona fide refunds to customers, (ii) sales taxes collected by Franchisee, or (iii) sales of prepaid cards or similar products (but the redemption of any such card or product will be included in Adjusted Gross Sales). Service gratuities directed by customers to employees are not counted towards Adjusted Gross Sales.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, Adjusted Gross Sales is defined as the total dollar amount of all sales generated through the Business for a given period. This includes payments for any services or products sold by the franchisee, whether for cash or credit, and any proceeds from business interruption insurance.
However, Adjusted Gross Sales does not include certain items. Specifically excluded are (i) coupons, discounts, and bona fide refunds to customers, (ii) sales taxes collected by the franchisee, and (iii) sales of prepaid cards or similar products. It is important to note that while the sale of prepaid cards is excluded, the redemption of these cards is included in Adjusted Gross Sales.
Service gratuities directed by customers to employees are also not counted towards Adjusted Gross Sales. This definition is important for franchisees as it directly impacts the calculation of royalties and other fees payable to Better Blend. Franchisees should carefully track their sales and exclusions to ensure accurate reporting and payment.