Does the gross sales volume for Carbones Pizzeria include sales tax or use 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 or use tax. The FDD specifies that the gross sales figures presented exclude revenue from alcohol sales, sales tax, use tax, non-food vending machine sales, and discounts. This definition aligns with the one provided in Carbones Pizzeria's Franchise Agreement.
This is important for prospective franchisees because it clarifies what is and isn't included in the reported gross sales figures. When evaluating the potential financial performance of a Carbones Pizzeria franchise, candidates should understand that the stated gross sales numbers represent the revenue generated from food sales, delivery, and off-premises sales, without the inclusion of sales tax, use tax, alcohol sales, vending machine sales, or discounts. This allows for a more accurate comparison of revenue potential across different locations and franchise models.
It is fairly standard practice in the franchise industry to exclude sales tax from gross revenue figures. This provides a clearer picture of the actual sales generated by the business, as sales tax is simply collected on behalf of the government and passed through. Franchisees should always carefully review the definitions of key financial terms like "Gross Sales" in the Franchise Agreement to fully understand how their financial performance will be measured and reported.