What is included in the definition of 'Gross Revenue' for a Buns On Fire franchise?

According to Buns On Fire's 2025 Franchise Disclosure Document, Gross Revenue encompasses all revenue generated by the franchise business. This includes all sales of products and services to customers, covering income from catering and delivery services, as well as sales or orders of food products or food preparation services related to the Buns On Fire business. This applies whether transactions are conducted in cash or on credit, and regardless of whether payment has been collected for credit transactions.

However, the definition of Gross Revenue for a Buns On Fire franchise excludes certain taxes and refunds. Specifically, excise, sales, and use taxes, as well as gross receipts taxes or similar taxes, are excluded if they are separately stated when the customer is charged. Additionally, bona fide refunds actually paid to customers are also excluded from Gross Revenue.

Understanding the components of Gross Revenue is crucial for prospective Buns On Fire franchisees because several fees, such as the royalty fee (6%), the proprietary marketing fund fee (1%), and the local advertising and marketing fee (1%), are calculated as a percentage of Gross Revenue. Accurate calculation and reporting of Gross Revenue are essential for compliance with the franchise agreement and to avoid potential audit fees if underreporting exceeds 5%.