According to the Casiola FDD, what is the definition of 'Gross Sales'?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
"Gross Sales" means the total gross amount of all revenues, receipts, and sales from all business and customers of the Franchised Business including, but not limited to, Gross Rental Revenues+ and Ancillary Third Party Service Fees. Gross Sales do not include sales or use taxes that are collected and remitted to the proper taxing authority.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, Gross Sales are defined as the total gross amount of all revenues, receipts, and sales from all business and customers of the Franchised Business. This encompasses Gross Rental Revenues+ and Ancillary Third Party Service Fees.
For a prospective Casiola franchisee, this definition is important because it clarifies what income is subject to royalty fees and other financial obligations to the franchisor. Understanding what constitutes Gross Sales ensures accurate financial reporting and helps in forecasting revenue and profitability.
However, Gross Sales do not include sales or use taxes that are collected and remitted to the proper taxing authority. This exclusion is beneficial for franchisees as they are not paying royalties on taxes they collect on behalf of the government. Franchisees should ensure they accurately track and report these taxes separately to avoid overpayment of royalties.