What is included in the definition of 'Gross Sales' for a Cinch I.T. franchise?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
- (2) The term "Gross Sales" will mean and include the total of all revenue and income from the sale of services and products to clients of the Franchised Business or any other source, whether or not sold or performed at or from the Franchised Business and whether received in cash, in services in kind, from barter and/or exchange, on credit (whether or not payment is received), or otherwise. You will deduct from your Gross Sales (but only if they have been included) the amount of all sales tax receipts or similar tax receipts which, by law, are chargeable to clients, if the taxes are separately stated when the client is charged and if the taxes are paid to the appropriate taxing authority. You will also deduct from your Gross Sales the amount of any documented refunds, charge backs, credits and allowances which you give in good faith to clients. All barter and/or exchange transactions to which Franchised Business furnishes services and/or products in exchange for goods or services to be provided to Franchised Business by a
vendor, supplier or client will, for the purpose of determining Gross Sales, be valued at the full value of the goods and/or services so provided to Franchised Business.
Source: Item 6 — OTHER FEES (FDD pages 14–20)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, "Gross Sales" encompasses the total revenue and income from all sales of services and products to clients of the Franchised Business, irrespective of where the sale or service is performed. This includes all income, regardless of whether it's received in cash, services in kind, through barter or exchange, or on credit, and regardless of whether payment has been received.
From this total, a Cinch I.T. franchisee can deduct the amount of all sales tax receipts or similar tax receipts which, by law, are chargeable to clients, if the taxes are separately stated when the client is charged and if the taxes are paid to the appropriate taxing authority. Additionally, franchisees can deduct the amount of any documented refunds, charge backs, credits, and allowances given in good faith to clients.
For barter and/or exchange transactions where the Cinch I.T. franchise furnishes services or products in exchange for goods or services provided to the franchise by a vendor, supplier, or client, the value of the goods and/or services provided to the franchise will be included in Gross Sales. This valuation is based on the full value of the goods and/or services provided to Cinch I.T.