What is included in the definition of 'Gross Revenue' for a Bhc restaurant, specifically regarding delivery services like DoorDash?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
(2) "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 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 6 — Other Fees (FDD pages 12–18)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, "Gross Revenue" is comprehensively defined for the purpose of calculating royalty and other fees. Gross Revenue includes the total revenue earned or received by a franchisee from any source related to the operation of the Bhc restaurant. This encompasses all revenue, whether received in cash, via gift card redemption, credit, or any other form of payment, and regardless of whether it has been collected.
Specifically, the definition explicitly includes sales from delivery services such as DoorDash, Uber Eats, and Postmates, clarifying that revenue generated through these channels is part of the Gross Revenue calculation. Additionally, any proceeds received from business insurance are also included in Gross Revenue. This broad definition ensures that all income streams associated with the Bhc restaurant contribute to the royalty and fee calculations.
However, the definition also provides some exclusions. Gross Revenue does not include any sales tax collected from customers that is shown separately and paid to the appropriate governmental authority. Bona fide customer refunds are also excluded, as are tips or gratuities paid to employees. These exclusions provide some relief to the franchisee by not including pass-through revenue or amounts intended for employees in the royalty calculation. Understanding this definition is crucial for Bhc franchisees to accurately calculate and report their Gross Revenue, which directly impacts their royalty and fee obligations to Bhc.