What is included in the definition of 'Food and Beverages' for Bevaris Alliance's Gross Sales Receipts?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
"Gross Sales Receipts" is the total gross sales revenues accrued or collected from the operations of Franchisee's Branded Business (as defined in the Franchise Agreement), whether for cash, check, credit card, pre-paid cards, pre order and paid meals through a designated software or on credit terms, from all sales of food, beverages, and other items and services (Food and Beverages) offered and sold by the 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 to 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 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 6 — OTHER FEES (FDD pages 8–10)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, Gross Sales Receipts include revenues from all sales of food, beverages, and other items and services offered and sold by the Branded Business. This definition is important because many fees and royalties owed to Bevaris Alliance are calculated as a percentage of Gross Sales Receipts.
However, the definition also specifies several deductions from Gross Sales Receipts. These include any refunds to customers, amounts received from settling claims for damaged or unsalable food and beverages, amounts deemed uncollectible, and the cost of employee meals or complimentary meals given in the ordinary course of business. These deductions reduce the total revenue subject to royalty and fee calculations.
It is important for prospective Bevaris Alliance franchisees to understand exactly how Gross Sales Receipts are defined, as this figure directly impacts their financial obligations to the franchisor. Franchisees should carefully track all sales and deductions to ensure accurate reporting and avoid potential disputes with Bevaris Alliance.