What is included in the definition of 'Gross Sales Receipts' for a Bevaris Alliance franchise?

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 revenues must be derived from all sales of food, beverages, and other items and services offered and sold by the Branded Business.

However, the definition also specifies certain deductions from, or exclusions to, Gross Sales Receipts. These include any amounts refunded to customers, amounts received in connection with the settlement of claims for damaged or unsalable food and beverages, and amounts deemed to represent uncollectible accounts, bad debts, or costs of collection. Additionally, 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 are also deducted.

For a prospective Bevaris Alliance franchisee, understanding this definition is crucial because many fees payable to the franchisor are calculated as a percentage of Gross Sales Receipts. Therefore, accurately tracking and reporting sales, while also accounting for allowable deductions, is essential for financial compliance and profitability. Franchisees should pay close attention to the specific inclusions and exclusions to ensure accurate reporting and avoid potential disputes with Bevaris Alliance.