Does the Better Blend financial performance representation include gratuities collected on behalf of employees in the definition of 'Sales'?

According to Better Blend's 2024 Franchise Disclosure Document, the financial performance representation specifically excludes gratuities collected on behalf of employees from the definition of 'Sales.' The FDD clarifies that 'Sales' refers to the total revenue derived from the sale of goods or services before any discounts, excluding sales taxes and gift card sales (but including redemption of gift cards). This distinction is important for prospective franchisees to understand, as it directly impacts how Better Blend calculates and reports its financial performance.

For a potential Better Blend franchisee, this means that the reported sales figures in Item 19 do not include any tips or gratuities that employees may have received. This is a common practice in the food and beverage industry, as these amounts are typically passed directly to the employees and are not considered revenue for the business itself. Understanding this definition is crucial for accurately assessing the potential revenue and profitability of a Better Blend franchise.

By excluding gratuities from the 'Sales' figure, Better Blend provides a clearer picture of the actual revenue generated from the sale of its products and services. This allows franchisees to better evaluate the core business performance and make informed decisions about their investment. It is important for prospective franchisees to carefully review the definitions provided in Item 19 and to seek clarification from Better Blend if they have any questions about how the financial performance data is calculated and presented.