For Central Bark Doggy Day Care, what is included in the definition of 'Gross Sales'?
Central_Bark_Doggy_Day_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
As used in this Agreement, the term "Gross Sales" shall mean the total revenues for all services rendered and for the sale of all merchandise including, but not limited to, sales from the facility, kiosk, cart, vending machines, catalogues, cable television, any Online Presence, or mail order derived by Franchisee after the date hereof, sold to or for Franchisee's customers, whether for cash or credit, after deducting credits for return, repair or replacement goods, all allowances expressly granted to such customers (such as trade and quantity discounts), excise taxes, sales and/or use and equivalent taxes, provided that the foregoing credits and taxes shall first have been included in the computation of Gross Sales for the same or prior periods. For purposes of the foregoing, revenues shall be treated as having been derived at the time the goods or services are first sold or billed irrespective of the time when payment for the same (whether full or partial) shall be received by Franchisee. Any gift certificate and/or gift card payments shall be included in Gross Sales in accordance with Franchisor's then-current guidelines for calculating Gross Sales;
provided that such gift card and/or gift certificate payments shall only be included in Gross Sales, at Franchisor's option, as either (i) the gross amount of such payments when such gift certificates or gift cards are redeemed from the Franchised Business or (ii) the face value of such gift certificates or gift cards at the time of the sale of such gift card or gift certificate and not upon redemption.
Source: Item 23 — Receipts (FDD pages 53–106)
What This Means (2025 FDD)
According to Central Bark Doggy Day Care's 2025 Franchise Disclosure Document, "Gross Sales" is defined as the total revenue from all services and merchandise sales. This includes sales from the facility itself, as well as any sales derived from kiosks, carts, vending machines, catalogues, cable television, any Online Presence, or mail order. These revenues are included whether the sales are for cash or credit.
From this total revenue, Central Bark Doggy Day Care franchisees can deduct credits for returned, repaired, or replaced goods, as well as allowances expressly granted to customers, such as trade and quantity discounts. Franchisees can also deduct excise taxes, sales taxes, use taxes, and equivalent taxes, provided these credits and taxes were initially included in the gross sales calculation for the same or prior periods.
The document specifies that revenues are considered derived when the goods or services are first sold or billed, regardless of when payment is actually received. Additionally, the inclusion of gift certificate and/or gift card payments in Gross Sales is subject to Central Bark Doggy Day Care's guidelines, where the franchisor has the option to include either the gross amount when redeemed or the face value at the time of sale, but not both.