What items are excluded from 'Adjusted Gross Sales' calculations for a Better Blend franchise?

According to Better Blend's 2024 Franchise Disclosure Document, 'Adjusted Gross Sales' is a crucial figure used to calculate various fees and payments within the franchise agreement. For a Better Blend franchisee, understanding what is excluded from this calculation is essential for accurate financial reporting and forecasting. The document specifies several items that are not included in Adjusted Gross Sales.

Specifically, the following items are excluded from the Adjusted Gross Sales calculation: coupons, discounts, and bona fide refunds given to customers. Additionally, sales taxes collected by the franchisee are not counted towards Adjusted Gross Sales. Furthermore, the sale of prepaid cards or similar products are excluded; however, the redemption of these cards or products will be included in Adjusted Gross Sales when they are used by customers. Finally, service gratuities directed by customers to employees are also excluded from Adjusted Gross Sales.

These exclusions provide clarity for franchisees in determining their gross sales figures, which directly impact royalty payments and other financial obligations to Better Blend. Franchisees should ensure their point-of-sale systems and accounting practices accurately reflect these exclusions to avoid discrepancies and ensure compliance with the franchise agreement. Understanding these exclusions allows franchisees to accurately assess their financial performance and profitability.