Does the gross sales volume for Carbones Pizzeria include sales tax?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
- Gross sales volume shown in the table above includes all revenues from the operation of the Restaurant for 2024 including any delivery or off-premises sales but excludes revenue from alcohol sales. Gross Sales do not include sales tax or use tax, non-food vending machine sales, and discounts. This is consistent with the definition of Gross Sales in our Franchise Agreement. Sales volumes vary considerably due to a variety of factors, such as demographics of the Restaurant trade area, competition from other restaurants in the trade area, traffic flow, accessibility and visibility, economic conditions in the restaurant trade area, advertising and promotional activities, and the business abilities and efforts of the management of the restaurant.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 26–27)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the gross sales volume does not include sales tax. The FDD specifies that gross sales include all revenues from the operation of the restaurant, including delivery and off-premises sales, but explicitly excludes revenue from alcohol sales, sales tax, use tax, non-food vending machine sales, and discounts. This definition aligns with the definition of Gross Sales outlined in the Carbones Pizzeria Franchise Agreement.
For a prospective Carbones Pizzeria franchisee, this means that the reported gross sales figures in Item 19 represent the revenue before the deduction of sales tax. Franchisees will need to account for sales tax separately when calculating their actual revenue and profit margins. Understanding this distinction is crucial for accurate financial planning and assessing the potential profitability of a Carbones Pizzeria franchise.
It is important to note that the sales volumes can vary significantly based on factors such as the demographics of the restaurant's trade area, competition, traffic flow, economic conditions, advertising efforts, and the franchisee's management abilities. Therefore, while the FDD provides financial performance representations, Carbones Pizzeria emphasizes that individual results may differ, and there is no guarantee of achieving similar sales figures.