If a Bombs Away franchisee sells used equipment, is that included in Gross Sales?

According to Bombs Away's 2024 Franchise Disclosure Document, the definition of "Gross Sales" specifically excludes sales of used equipment under certain conditions. Gross Sales is defined as the total dollar amount of all sales generated through the Business for a given period, including payments for services or products sold, whether for cash or credit. However, this definition explicitly excludes "sales of used equipment not in the ordinary course of business".

For a Bombs Away franchisee, this means that if the sale of used equipment is not a typical part of their regular business operations, the revenue from such sales does not need to be included when calculating Gross Sales. This is important because Gross Sales figures are often used to calculate royalty payments and other fees owed to the franchisor.

Therefore, franchisees should maintain clear records of any sales of used equipment that fall outside the ordinary course of business to ensure accurate reporting of Gross Sales and to avoid overpayment of royalties or fees to Bombs Away Franchising. It is important to consult with Bombs Away Franchising to clarify what constitutes "ordinary course of business" in the context of equipment sales to ensure compliance with the franchise agreement.