What is included in the 'Gross Sales' calculation for a Bombs Away franchise?

According to Bombs Away's 2024 Franchise Disclosure Document, "Gross Sales" is defined as the total dollar amount of all sales generated through the Business for a given period. This includes payments for any services or products sold by the franchisee, whether the payment is made in cash or via credit. This broad definition ensures that all revenue streams are accounted for when calculating royalties and other fees owed to Bombs Away Franchising.

However, the calculation of Gross Sales for a Bombs Away franchise does not include certain items. Specifically excluded from Gross Sales are bona fide refunds to customers, sales taxes collected by the franchisee, sales of used equipment not in the ordinary course of business, and sales of prepaid cards or similar products. It is important to note that while the sale of prepaid cards is excluded, the redemption of any such card or product will be included in Gross Sales.

For a prospective Bombs Away franchisee, understanding this definition is crucial for accurate financial reporting and royalty payments. Franchisees must meticulously track all sales and ensure that excluded items are properly accounted for to avoid discrepancies. Additionally, the franchisor retains the right to remotely access the franchisee's point-of-sale system to verify Gross Sales, emphasizing the need for accurate and transparent record-keeping.