For Better Blend, what is included in 'Sales' for the financial performance representation?

According to Better Blend's 2024 Franchise Disclosure Document, the term 'Sales' in the financial performance representation refers to the total revenue derived from the sale of goods or services, before any discounts are applied. This is a standard definition of sales or gross revenue used in financial reporting. However, the FDD specifies certain exclusions from this 'Sales' figure.

Specifically, the 'Sales' figure for Better Blend does not include sales taxes collected, which are pass-through funds. Additionally, the 'Sales' figure excludes the initial sale of gift cards. However, it does include revenue recognized when those gift cards are redeemed for goods or services. Finally, any gratuities collected on behalf of employees are also excluded from the 'Sales' calculation.

Prospective franchisees should understand exactly what comprises 'Sales' because it is the baseline figure used to calculate other key performance indicators and expenses, such as 'Cost of Goods Sold', 'Labor Cost', and ultimately 'Net Profit'. Knowing what is included and excluded from 'Sales' allows franchisees to accurately assess the financial performance of the affiliate locations and to set realistic expectations for their own potential revenue.