What deductions are permitted from Gross Sales when calculating royalties for a Cool Binz franchise?
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, franchisees can deduct specific items from their gross sales when calculating royalty payments. Gross sales include all revenue generated from operating the Cool Binz business, whether in cash, services in kind, or through barter or exchange. Barter and exchange transactions are valued at the full retail value of the goods or services provided.
Specifically, a Cool Binz franchisee may 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 can deduct the amount of any documented refunds that Cool Binz considers appropriate, in accordance with their published policies.
It is important to note that royalties are only paid on the receipt of cash, services in kind, barter, or other exchanges. All payments received for jobs must be recorded in the Cool Binz Software or other designated software within 48 hours of receipt. This ensures accurate tracking and reporting of gross sales for royalty calculation purposes.