How does Big Apple Bagels define 'Gross Revenues' in the Franchise Agreement?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
include 48 BAGELS | Production Stores | and 0 BAGELS | Satellite Store | (collectively the |
Notes:
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- "Gross Revenues" is defined in the Franchise Agreement as the entire amount of all gross sales and business receipts, including direct or indirect barter transactions, catering accounts, proceeds of business interruption insurance policies, wholesale accounts (both on and off premises) arising out of the operation of the Store, or through or by means of the business conducted in connection therewith, whether for cash or credit, but excluding: (1) sales, use, or service taxes collected from customers and paid to the approp
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 76–80)
What This Means (2025 FDD)
According to Big Apple Bagels's 2025 Franchise Disclosure Document, 'Gross Revenues' is comprehensively defined within the Franchise Agreement. This definition is important because Big Apple Bagels uses gross revenues to determine franchise performance and calculate royalties.
Specifically, Gross Revenues include the entire amount of all gross sales and business receipts. This encompasses direct and indirect barter transactions, catering accounts, proceeds from business interruption insurance policies, and wholesale accounts, whether these sales occur on or off the premises. The revenues also include all income derived from the business, whether received in cash or credit.
However, the definition excludes sales, use, or service taxes collected from customers and remitted to the appropriate taxing authority. It also excludes all bona fide customer refunds, approved rebates, discounts, and allowances. Understanding this definition is crucial for franchisees as it directly impacts reported revenue figures and, consequently, royalty payments and performance evaluations within the Big Apple Bagels franchise system.