For Bevaris Alliance, are amounts received for unsalable food deducted from 'Gross Sales Receipts'?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
Gross Sales Receipts: The total gross sales revenues accrued or collected from the operations of Franchisee's Branded Business, whether for cash, check, credit card, pre-paid cards, pre order and paid meals through designated software or on credit terms, from all sales of food, beverages, and other items and services (Food and Beverages) offered and sold pursuant to the Franchisee's Branded Business. The following shall be deducted from (or, as appropriate within its context, not included in) Gross Sales Receipts: (a) Any amounts, whether in cash, credit, or otherwise refunded customers; (b) All amounts received in connection with the settlement of claims for damaged or unsalable Food and Beverages; (c) All amounts which are deemed to represent uncollectible accounts, bad debts or costs of collection; (d) The cost of meals provided to the employees of Franchisee at cost, if any; and (e) the cost of charitable, promotional, and other complimentary meals given in the ordinary course of business and as is customary for similar operations.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, the definition of 'Gross Sales Receipts' includes specific deductions. Gross Sales Receipts are defined as the total gross sales revenues accrued or collected from the operations of the Franchisee's Branded Business, whether for cash, check, credit card, pre-paid cards, pre order and paid meals through designated software or on credit terms, from all sales of food, beverages, and other items and services offered.
Specifically, amounts received in connection with the settlement of claims for damaged or unsalable Food and Beverages are deducted from Gross Sales Receipts. This means that if a Bevaris Alliance franchisee receives money from a supplier or another party due to damaged or unsalable food, that amount is subtracted from their total gross sales when calculating royalties and other fees.
Other deductions from Gross Sales Receipts include any amounts refunded to customers, amounts deemed uncollectible, the cost of meals provided to employees at cost (if any), and the cost of charitable, promotional, and other complimentary meals given in the ordinary course of business and as is customary for similar operations. This comprehensive list of deductions provides clarity for franchisees in calculating their royalty obligations to Bevaris Alliance.