How are monthly Net Sales reported to Buff City Soap?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
Monthly Net Sales are reported to us each day through the BCS Makery Point of Sale ("POS") system. "Net Sales" means the total selling price of all services and products and all income of every kind and nature related to your BCS Makery, whether for cash, cash equivalents, or credit, and regardless of collection in the case of credit.
Proceeds from the sale of coupons, gift cards, gift certificates or vouchers shall be included in Net Sales when and at the Makery from which the coupons, gift cards, gift certificates or vouchers are eventually redeemed.
Net Sales exclude the following: complimentary products and services (provided that the aggregate amount of such products and services does not exceed 2% of Net Sales for the applicable week), tips and gratuities, and sums collected and actually paid by you for any sales or other excise tax imposed by any duly constituted government authority.
In the case of promotional discounts implemented by us at the BCS Makery, the amount actually paid by the guest after the discount, rather than the original amount, will be considered for purposes of the term Net Sales.
Net Sales also includes the proceeds of any business interruption insurance applicable to your BCS Makery.
Source: Item 5 — INITIAL FEES (FDD pages 15–23)
What This Means (2025 FDD)
According to Buff City Soap's 2025 Franchise Disclosure Document, franchisees report monthly Net Sales daily through the BCS Makery Point of Sale (POS) system. Net Sales include the total selling price of all services and products, and all income related to the Makery, whether in cash, cash equivalents, or credit, regardless of whether credit payments have been collected. Proceeds from the sale of coupons, gift cards, gift certificates, or vouchers are included in Net Sales when they are redeemed at the Makery.
Net Sales exclude complimentary products and services, provided that these do not exceed 2% of Net Sales for the applicable week. Tips, gratuities, and sales or excise taxes collected and paid to government authorities are also excluded. For promotional discounts implemented by Buff City Soap, the amount actually paid by the customer after the discount is considered Net Sales. Net Sales also include proceeds from any business interruption insurance applicable to the franchisee's BCS Makery.
The Royalty Fee, which is 6% of Net Sales, is currently payable monthly based on the prior calendar month's Net Sales and is due on the 15th of each month. The Brand Fund contribution, which is 2% of Net Sales, is also payable monthly based on the prior calendar month's Net Sales and is due on the 15th of each month. Both the Royalty Fee and Brand Fund Contribution payments must be made via electronic funds transfer. Buff City Soap reserves the right to modify the due date to every Friday for the preceding week commencing Monday and closing Sunday upon 60 days' prior written notice.
Prospective franchisees should note that accurately tracking and reporting Net Sales through the POS system is crucial for calculating royalty fees, brand fund contributions, and local marketing expenditures. Franchisees must ensure their POS system is properly configured and that all sales data is accurately recorded to avoid discrepancies. Additionally, franchisees should be aware of the specific inclusions and exclusions in the definition of Net Sales to ensure accurate reporting and compliance with the franchise agreement.