For Burneys Sweets More, what is included in the definition of 'Gross Sales'?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 3. "Gross Sales" means the total of gross revenue that you derive from the operation of your Shop, including, but not limited to, all revenue from services rendered by your Shop and from the sale of products, whether from sales for cash or credit and regardless of the collection thereof, including sales made on a retail, wholesale, or any other basis. Gross Sales also includes any proceeds you receive from business interruption insurance. Gross Sales does not include tips, sales taxes or gift card redemptions, nor does it include sales to other franchisees and company-owned Shops. Royalties on gift cards are assessed when the gift card is sold. In the event you use a gross buying service such as Groupon or Living Social, gross sales shall include the total gross amount paid by the customer, whether or not such amount is ultimately paid to you or the group buying service.
Source: Item 6 — OTHER FEES (FDD pages 11–17)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, "Gross Sales" is defined as the total gross revenue a franchisee derives from operating their shop. This encompasses all revenue from services rendered and product sales, whether the sales are for cash or credit, and regardless of whether the revenue has actually been collected. This definition includes sales made on a retail, wholesale, or any other basis. Gross Sales also includes any proceeds received from business interruption insurance.
However, the definition of Gross Sales for Burneys Sweets More specifically excludes certain items. These exclusions include tips, sales taxes, and gift card redemptions. Additionally, sales made to other Burneys Sweets More franchisees and company-owned shops are not included in Gross Sales. It's important to note that royalties on gift cards are assessed when the gift card is sold, not when it is redeemed.
Finally, the FDD clarifies the handling of gross buying services like Groupon or Living Social. In such cases, Gross Sales includes the total gross amount paid by the customer, regardless of whether that amount is ultimately paid to the franchisee or the group buying service. This comprehensive definition is crucial because several fees, such as the royalty fee (3% of monthly Gross Sales, potentially rising to 5%) and the Brand Fund Fee (0.5% of monthly Gross Sales, potentially rising to 1.5%), are calculated based on Gross Sales.