What is included in the definition of 'Gross Revenues' for a Cd One Price Cleaners franchise?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 2: "Gross Revenues" means revenue from the sale of all products and services and all other income or consideration of every kind and nature that you or the Store receives, including all revenues associated with delivering and/or selling products or services off-premises to customers and any proceeds from business interruption insurance, whether for cash, credit, charge account, debit account, exchange, barter or otherwise, and regardless of collection, less (a) any
sales taxes and other taxes you collect from your customers and pay directly to the appropriate taxing authority, and (b) any customer discounts or refunds.
Source: Item 6 — Other Fees (FDD pages 13–20)
What This Means (2025 FDD)
According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, "Gross Revenues" is defined as the total income received by the store. This includes revenue from all sales of products and services, as well as any other form of income or consideration, regardless of whether it's in cash, credit, or other forms. It also encompasses revenues from off-premises deliveries and sales, and any proceeds from business interruption insurance.
However, the definition of Gross Revenues does allow for some deductions. Specifically, franchisees can deduct any sales taxes or other taxes collected from customers that are directly paid to the appropriate taxing authority. Additionally, any customer discounts or refunds provided can also be subtracted from the total revenue when calculating Gross Revenues.
Understanding this definition is crucial for Cd One Price Cleaners franchisees because many fees, such as the technology fee and marketing fund contributions, are calculated as a percentage of Gross Revenues. Therefore, accurately tracking and reporting all income and eligible deductions is essential for compliance and financial management.