What sales taxes are excluded from 'Gross Revenues' for a Bumble Roofing franchise?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
Gross Revenues do not include:
- (i) the amount of any tax imposed by any federal, state, municipal or other governmental authority directly on sales and collected from customers, provided that the amount of any such tax is shown separately and in fact paid by Franchisee to the appropriate governmental authority; and
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, gross revenues do not include taxes imposed by federal, state, municipal, or other governmental bodies that are directly levied on sales and collected from customers.
For a Bumble Roofing franchisee, this means that when calculating gross revenues (which are used to determine royalty payments and other financial obligations to the franchisor), you can exclude the amount of sales tax you collect from customers, provided that you separately show the tax amount and actually remit it to the appropriate government authority. This exclusion helps ensure that franchisees are not paying royalties on funds they are simply collecting and passing through to the government.
This is a fairly standard practice in franchising, as it prevents franchisees from being penalized for collecting taxes on behalf of the government. It is important for franchisees to maintain accurate records of sales tax collected and remitted to ensure compliance with both tax laws and the franchise agreement.