Are coupons and discounts included in Better Blend's Adjusted Gross Sales?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
Notes
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- "Adjusted Gross Sales" is defined in our franchise agreement as the total dollar amount of all sales generated through your business for a given period, including, but not limited to, payment for any services or products sold by you, whether for cash or credit. It also includes any proceeds you receive from business interruption insurance. Adjusted Gross Sales does not include (i) coupons, discounts, and bona fide refunds to customers, (ii) sales taxes collected, 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).
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- You must report your adjusted gross sales to us each week. If you fail to report your adjusted gross sales, we will withdraw estimated royalty fees and marketing fund contributions
based on 125% of the most recent adjusted gross sales you reported. We will true-up the actual fees after you report adjusted gross sales.
- We currently require you to pay royalty fees and other amounts due to us by preauthorized bank draft. However, we can require an alternative payment method. If we permit you to pay by credit card or any other method which causes us to incur a processing fee, you will be responsible for the amount of the processing fee.
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, Adjusted Gross Sales do not include coupons and discounts. Adjusted Gross Sales is defined as the total dollar amount of all sales generated through your business for a given period, including payment for any services or products sold, whether for cash or credit. It also includes any proceeds you receive from business interruption insurance.
For a Better Blend franchisee, this means that when calculating royalties and marketing fund contributions (which are based on a percentage of Adjusted Gross Sales), you can deduct the value of coupons and discounts offered to customers. This can lower the amount you owe to Better Blend on a weekly basis.
It is important to note that while coupons and discounts are excluded, sales taxes collected are also excluded, and the redemption of prepaid cards or similar products will be included in Adjusted Gross Sales. Franchisees must accurately track and report their adjusted gross sales to Better Blend each week to ensure correct royalty and marketing fund payments. Failure to do so may result in Better Blend estimating these fees based on 125% of the most recent adjusted gross sales reported.