Are sales taxes collected included in Better Blend's Adjusted Gross Sales?

According to Better Blend's 2024 Franchise Disclosure Document, sales taxes collected are not included in the calculation of Adjusted Gross Sales. Adjusted Gross Sales is a critical figure because Better Blend uses it to calculate royalty fees and marketing fund contributions.

The FDD specifies that Adjusted Gross Sales includes the total dollar amount of all sales generated through the business, including payments for services or products sold, whether for cash or credit, and any proceeds from business interruption insurance. However, the definition explicitly excludes certain items from Adjusted Gross Sales.

Specifically, 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. However, the redemption of any such card or product will be included in Adjusted Gross Sales. This means that while the initial sale of a prepaid card is not counted, the value of the card when it is used to purchase goods or services is included in Adjusted Gross Sales. This definition is important for franchisees to understand, as it directly impacts the amount of royalty fees and marketing fund contributions they will owe to Better Blend.