What is included in the Gross Sales calculation for a Black Bear Diner restaurant?

According to the 2025 Black Bear Diner Franchise Disclosure Document, Gross Sales consist of the total sales price of all food products, including take-out, drive-thru, or catering, and all other products and services sold by the Black Bear Diner Restaurants. This figure is calculated net of discounts and excludes taxes collected directly from customers and paid to taxing authorities.

This definition is important for prospective franchisees because royalties and advertising fees are typically calculated as a percentage of Gross Sales. Therefore, understanding what constitutes Gross Sales is crucial for accurately forecasting expenses and profitability. Knowing that discounts are subtracted before calculating Gross Sales, while taxes are excluded, allows for a more precise financial analysis.

Black Bear Diner provides financial performance representations based on Gross Sales, so franchisees should pay close attention to this definition when reviewing Item 19 of the FDD. The FDD also includes information on the highest and lowest Gross Sales amounts for both franchised and company-affiliated restaurants during fiscal years 2023 and 2024, which can provide additional context for understanding potential revenue.