What is included in the calculation of 'Gross Revenue' for a Bhc restaurant?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
"Gross Revenue" means the gross amount of revenue, whether for cash, by redemption of gift cards or certificates or for credit, regardless of collection, earned or received by you from any source in connection with the operation of the Franchised BHC Restaurant or with any similar or related activity, whether on or off your business premises, arising directly or indirectly from whatever source, including but not limited to sales from delivery or deliver services such as Door Dash, Uber Eats, Postmates, etc. Gross Revenue
- also includes any amount received from business insurance proceeds. "Gross Revenue" does not include: (i) the amount of any tax imposed by any governmental authority directly on sales and collected from customers, provided that the amount of any such tax is shown separately and is in fact paid by you to the appropriate governmental authority; (ii) the amount of any bona fide customer refunds; and (iii) tips or gratuities paid or payable to your employees.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Gross Revenue is a crucial figure as it is used to calculate royalty fees and marketing fees, if applicable. For a Bhc restaurant, Gross Revenue encompasses the total revenue earned or received, irrespective of whether it's in cash, from gift card redemptions, certificates, or credit transactions. This calculation is made before deductions, covering all income sources related to the restaurant's operations, both on and off the premises. This includes revenue from delivery services like Door Dash, Uber Eats, and Postmates.
Furthermore, the definition of Gross Revenue includes any amounts received from business insurance proceeds. However, there are specific exclusions. Gross Revenue does not include taxes collected directly from customers and remitted to governmental authorities, provided these taxes are separately stated and properly paid. It also excludes bona fide customer refunds and tips or gratuities paid to employees.
For a prospective Bhc franchisee, understanding this definition is critical because it directly impacts the amount of royalties and potential marketing fees owed to Bhc. Accurate tracking and reporting of all revenue sources, as well as proper accounting for exclusions, are essential for compliance with the franchise agreement and to avoid disputes with Bhc.