For Bevaris Alliance, what is the definition of 'Food and Beverages' in relation to 'Gross Sales Receipts'?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
Branded Business as carried on by the Franchisee under this agreement.
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;
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, Gross Sales Receipts are defined as the total gross sales revenues accrued or collected from the operations of the Franchisee's Branded Business. This includes revenues from cash, check, credit card, pre-paid cards, pre-order and paid meals through designated software, or credit terms. These receipts are derived from all sales of food, beverages, and other items and services offered and sold through the Franchisee's Branded Business. The definition of 'Food and Beverages' is not explicitly detailed beyond this context.
Certain items are deducted from or not included in Gross Sales Receipts. These include refunds to customers, amounts received from settling claims for damaged or unsalable food and beverages, uncollectible accounts or bad debts, the cost of meals provided to employees at cost, and the cost of charitable, promotional, or complimentary meals given in the ordinary course of business.
For a prospective Bevaris Alliance franchisee, understanding what constitutes Gross Sales Receipts is crucial because the royalty fees (10%) and system marketing fund fees (2%) are calculated based on these receipts. Knowing what can be deducted from gross sales can help in accurately calculating these fees and managing the financial aspects of the franchise. Franchisees should clarify with Bevaris Alliance what specific items or services are included within 'other items and services' to ensure accurate reporting and avoid potential disputes.