According to Cool Binz, what does the transaction price of a contract exclude?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
You must report your Gross Sales each month. "Gross Sales," as used in this Agreement, includes all revenue generated from operating the COOL BINZ Business, whether in cash, in services in kind, from barter and/or exchange, or otherwise. All barter and/or exchange transactions for which you furnish Services and/or products in exchange for goods or services will, for the purpose of determining Gross Sales, be valued at the full retail value of the goods and/or services you provide. You may deduct from Gross Sales the amount of all sales tax receipts or similar tax receipts that, by law, are chargeable to customers, if these taxes are separately stated when the Customer is charged. In accordance with our policies as published periodically, you may also deduct from Gross Sales the amount of any documented refunds that we consider appropriate. You must pay Royalties only on the receipt of the cash, services in kind, barter and/or other exchange. All payments received for jobs must be recorded in the COOL BINZ Software or other software program within the Required Software that we designate within 48 hours of being received.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the gross sales reported by a franchisee each month include all revenue generated from operating the Cool Binz business. This includes revenue received in cash, services in kind, or through barter and exchange. For barter and exchange transactions, gross sales are determined by the full retail value of the goods or services provided by the franchisee.
However, Cool Binz allows franchisees to deduct certain items from gross sales when calculating royalties. Specifically, franchisees can deduct the amount of all sales tax receipts or similar tax receipts that are chargeable to customers, provided these taxes are separately stated when the customer is charged. Additionally, franchisees may deduct the amount of any documented refunds that Cool Binz considers appropriate, in accordance with their published policies.
It is important to note that franchisees must pay royalties on the receipt of cash, services in kind, or other forms of exchange. All payments received for jobs must be recorded in the Cool Binz Software or another designated software program within 48 hours of being received. This ensures accurate tracking of revenue and royalty obligations.