Does the 'Gross Sales' definition for a Carbones Pizzeria franchise include revenue from all business activities?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
- c. Gross Sales. The term "Gross Sales" shall mean the total amount of revenues, income, receipts and other amounts received from all business activities taking place by or through the Restaurant, and all other services and products, if any, sold under the Names and Marks, or otherwise, including amounts received for catering or for food and beverages
sold from a food truck or other vehicle. There shall be excluded from "Gross Sales" amounts collected and remitted by Franchisee to any governmental taxing authority in satisfaction of sales or occupation taxes, non-food vending machine sales discounts and amounts received from alcohol sales.
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, "Gross Sales" is defined as the total revenue from all business activities occurring at or through the restaurant. This includes all services and products sold under the Carbones Pizzeria name, such as catering, food sold from a food truck, and beverages.
However, the definition of Gross Sales for a Carbones Pizzeria franchise specifically excludes certain amounts. These exclusions include amounts collected and remitted to governmental taxing authorities for sales or occupation taxes. It also excludes revenue from non-food vending machine sales and revenue from alcohol sales.
For a prospective Carbones Pizzeria franchisee, understanding this definition is crucial because the royalty fees are calculated based on Gross Sales. Accurately tracking and reporting Gross Sales, while excluding the specified items, will ensure compliance with the franchise agreement and proper royalty payments. Franchisees should pay close attention to these exclusions to avoid overreporting and overpaying royalties.