Does the gross sales volume for Carbones Pizzeria include use tax?

According to Carbones Pizzeria's 2025 Franchise Disclosure Document, gross sales do not include use tax. The FDD specifies that the gross sales volume shown in Item 19 includes all revenues from the operation of the restaurant for 2024, including delivery and off-premises sales, but 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 in the Carbones Pizzeria Franchise Agreement.

For a prospective Carbones Pizzeria franchisee, this means that the financial performance representations provided in Item 19, specifically the annual gross sales ranges for different restaurant types (fast casual, express, and full-service), do not include use tax. Franchisees should be aware that the actual revenue they collect will include these taxes, but they are not considered part of their gross sales for the purpose of the FDD's financial performance data. This is a fairly standard practice in the franchise industry, as sales and use taxes are pass-through funds collected on behalf of the government.

It is important for potential franchisees to understand exactly what is included and excluded from gross sales, as this figure is often used to calculate royalties and other fees payable to Carbones Pizzeria. Franchisees should carefully review the definition of "Gross Sales" in the Franchise Agreement to ensure they have a clear understanding of how it is calculated. They should also consult with a financial advisor to understand the implications of these exclusions on their financial planning and reporting.