Where can I find the definition of "Net Sales" for Cinnabon Royalty Fee calculation?

According to Cinnabon's 2025 Franchise Disclosure Document, the definition of "Net Sales" for royalty fee calculation can be found in Item 6 under "OTHER FEES". The document specifies what is included and excluded from the calculation of Net Sales.

Net Sales includes sales made from an SRU (presumably a smaller retail unit). However, it does not include several items. These exclusions are (a) the initial sales or reloading of gift cards, (b) discounts, (c) the sale of food or merchandise for which refunds have been made in good faith to customers, (d) the discounted portion of employee meals, (e) sales, meals, use or excise tax imposed by a governmental authority directly on sales and collected from customers, provided that the amount for the tax is added to the selling price or absorbed therein and is actually paid by you to a governmental authority, (f) the sale of equipment used in the operation of the Bakery, or (g) tips.

Understanding this definition is crucial for Cinnabon franchisees as it directly impacts the royalty fees they pay. By clearly outlining what constitutes Net Sales, Cinnabon aims to provide transparency and avoid potential disputes over royalty calculations. Franchisees should carefully review these inclusions and exclusions to accurately report their sales and calculate their royalty obligations.