What sums are included in Chop5 Salad Kitchen's Gross Sales calculation?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
the issuance date of this Disclosure Document.
- "Gross Sales" means all gross sums you bill or collect from all goods and services you sell, plus all other sums you collect from the operation of your Restaurant, including any advertising revenues, sponsorship fees and business interruption insurance proceeds. Gross Sales excludes: (a) sales or use taxes; (b) amounts refunded to customers; (c) revenues from the sale of furniture, fixtures and equipment in the ordinary course of business; (d) the value of approved coupons, vouchers or similar items at the time of redemption; and (e) tips paid to and retained by staff members as a gratuity. The Manual may include policies governing the manner in which proceeds from the sale of gift cards are treated for purposes of calculating Gross Sales. The Manual may also provide details on the calculation of Gross Sales relating to
qualifying purchases and redemptions by members under a customer loyalty program.
Source: Item 6 — OTHER FEES (FDD pages 12–17)
What This Means (2024 FDD)
According to Chop5 Salad Kitchen's 2024 Franchise Disclosure Document, Gross Sales encompass all gross income that a franchisee bills or collects from all goods and services they sell. This also includes any other income collected from the operation of the Restaurant, such as advertising revenues, sponsorship fees, and business interruption insurance proceeds.
However, the calculation of Gross Sales for a Chop5 Salad Kitchen location excludes certain items. These exclusions include sales or use taxes, amounts refunded to customers, and revenues from the sale of furniture, fixtures, and equipment when sold in the ordinary course of business. Additionally, the value of approved coupons, vouchers, or similar items at the time of redemption, as well as tips paid to and retained by staff members as a gratuity, are also excluded from the Gross Sales calculation.
The manual may include policies governing the manner in which proceeds from the sale of gift cards are treated for purposes of calculating Gross Sales. The manual may also provide details on the calculation of Gross Sales relating to qualifying purchases and redemptions by members under a customer loyalty program. It is important for prospective franchisees to review the manual for the most up-to-date policies.