What is included in the definition of 'Gross Sales' for a Cool Binz franchise?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Royalties are payment for the use of the Marks, System, Territory, and Manuals. "Gross Sales" means all revenue generated from operating the COOL BINZ Business, whether in cash, in services in kind, from barter and/or exchange, or otherwise, less any sales tax or refunds for non-salvageable items. Commissions paid to lead sources may not be deducted from Gross Sales, and are subject to Royalty.
Source: Item 6 — OTHER FEES (FDD pages 19–27)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, "Gross Sales" encompasses all revenue generated from operating the Cool Binz business. This includes revenue received in various forms, such as cash, services in kind, or through barter and/or exchange. However, sales tax or refunds for non-salvageable items are deducted from this total.
It is important to note that commissions paid to lead sources are not deductible from Gross Sales and remain subject to royalty fees. This means that even though a franchisee may pay a commission to acquire a customer, the gross revenue from that customer still contributes to the total sales figure on which royalties are calculated.
For a prospective Cool Binz franchisee, understanding this definition is crucial because it directly impacts the royalty fees owed to the franchisor. By including all forms of revenue and disallowing deductions for lead source commissions, Cool Binz ensures that royalties are calculated on the broadest possible revenue base. Franchisees should carefully consider this when projecting their potential earnings and royalty obligations.