What sales are excluded from the calculation of 'Gross Sales' for a Brueggers Bagels franchise?

• 1.8. "Gross Sales" means all sales generated through the Bakery including fees for any products or goods you sell, whether for cash or credit (regardless of collectability, except as provided below), and income of every kind or nature related to the Bakery, including, without limitation, revenues from the sale of branded merchandise and food products, whether from sales on the Premises, by delivery, from catering if the Bakery provides the product, by on-line, internet or phone-app ordering if picked up at the Bakery or at wholesale (whether the sales method is permitted or not) and from the use of vending machines or similar arcade-like machines.

In the event your business operations are interrupted and you receive business interruption insurance proceeds, then the amount of Gross Sales used by you to determine your loss will be deemed the Gross Sales for that period and deemed made when you receive the insurance proceeds. "Gross Sales" does not include any sales tax or other taxes you collect from customers for transmittal to the appropriate taxing authority.

Gross Sales includes the retail value of all products sold in connection with the redemption of coupons, gift certificates, gift cards or vouchers; however, at the time such coupons, gift certificates, gift cards or vouchers are purchased, the

retail price may be excluded from Gross Sales for the purpose of determining the amount of Gross Sales upon which fees are due. When calculating Gross Sales, you may deduct that portion of the normal full menu price of any item that you do not collect as a result of BFC-approved promotions (whether local or system-wide, including coupons) and manager discounts (collectively, "Sales Discounts"), as well as discounted employee meals. Sales Discounts and discounted employee meals must be fully disclosed on all reports you submit to BFC, and BFC reserves the right, in its sole discretion, to disallow any Sales Discounts not meeting the requirements we set forth. We reserve the right to modify our policies consistent with restaurant industry practices regarding revenue recognition, revenue reporting, and the inclusion in or exclusion of certain revenue from "Gross Sales" as circumstances, business practices, and technology change. We reserve the right to modify our policies consistent with restaurant industry practices regarding revenue recognition, revenue reporting, and the inclusion in or exclusion of certain revenue from "Gross Sales" as circumstances, business practices, and technology change.

Source: Item 22 — CONTRACTS (FDD page 61)