According to the Bojangles FDD, what is included in the definition of 'Gross Sales'?

According to Bojangles's 2025 Franchise Disclosure Document, Gross Sales include all revenue from the sale of all services and products related to the franchised restaurant, whether the payment is in cash or credit. This applies regardless of whether the payment has actually been collected in the case of credit sales. However, Gross Sales do not include any sales taxes or other taxes that the franchisee collects from customers and then remits to the appropriate taxing authority.

This definition is important because several fees payable to Bojangles are calculated as a percentage of Gross Sales, such as advertising fees. Therefore, a clear understanding of what constitutes Gross Sales is crucial for accurately calculating these payments. Franchisees must submit a statistical report and statement of receipts to Bojangles by the 15th day of each month, beginning with the opening of their restaurant. This report must accurately state the amount of all Gross Sales during the preceding month, along with any other data or information that Bojangles may require.

It is typical in the franchise industry for royalty fees and advertising fees to be based on a percentage of gross sales, so this definition is a standard practice. Franchisees should ensure they have a clear accounting system in place to track all sales and taxes accurately to comply with Bojangles's reporting requirements. Understanding this definition is essential for managing the financial aspects of operating a Bojangles franchise.