What is included in the definition of 'Gross Sales' for a Burneys Sweets More franchise?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee has not reported Gross Sales to Franchisor for any fiscal period, Franchisor may transfer from the Account an amount equal to the average of the preceding three (3) months' Gross Sales.
If, at any time, Franchisor determines that Franchisee has underreported its Gross Sales, or underpaid the Royalty or other amounts due to Franchisor under this Agreement, or any other agreement, Franchisor may initiate an immediate transfer from the Account in the appropriate amount in accordance with the foregoing procedure, including interest as provided in this Agreement.
Any overpayment will be credited to the Account effective as of the first reporting date after Franchisor and Franchisee determine that such credit is due.
Alternatively, Franchisor shall have the right in lieu of the Royalty report submission procedure outlined above to obtain the Gross Sales directly from electronic communication with Franchisee's point-of-sale system.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
I am unable to provide a definition of 'Gross Sales' for a Burneys Sweets More franchise, according to the 2025 Franchise Disclosure Document excerpts provided. While the excerpts contain definitions for terms such as "Associate," "Competitive Business," "Confidential Information," "Franchise Agreement," "Location," "Restrictive Period," "Restrictive Territory," "Term," and "Territory," they do not include a definition of "Gross Sales."
However, the excerpts do reference 'Gross Sales' in the context of royalty payments and reporting. Specifically, if a Burneys Sweets More franchisee fails to report gross sales, the franchisor may transfer an amount equal to the average of the preceding three months' gross sales from the franchisee's account. Additionally, the franchisor has the right to obtain gross sales information directly from the franchisee's point-of-sale system.
To fully understand what constitutes 'Gross Sales' for a Burneys Sweets More franchise, a prospective franchisee should ask the franchisor for the specific definition used in the Franchise Agreement. This definition is crucial for accurately calculating royalties and understanding financial obligations.