For Better Blend, is the redemption of prepaid cards included in Adjusted Gross Sales?
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, the definition of "Adjusted Gross Sales" is clearly outlined in the franchise agreement. Adjusted Gross Sales includes the total dollar amount of all sales generated through the Business, encompassing payments for services or products sold, whether in cash or credit, and any proceeds from business interruption insurance.
However, the calculation of Adjusted Gross Sales for Better Blend specifically excludes certain items. These exclusions are coupons, discounts, and bona fide refunds given to customers. Additionally, the initial sales of prepaid cards or similar products are not included in Adjusted Gross Sales.
Importantly, the FDD states that while the initial sale of prepaid cards is excluded, the redemption of any such prepaid cards or products is included in Adjusted Gross Sales. This means that when a customer uses a prepaid card to make a purchase at Better Blend, that transaction's value counts towards the location's Adjusted Gross Sales.