For Cool Binz, are sales-based taxes included in the reported revenue?

According to Cool Binz's 2025 Franchise Disclosure Document, franchisees must report their Gross Sales each month, which includes all revenue generated from operating the Cool Binz business, whether in cash, services in kind, or barter/exchange. However, franchisees may deduct the amount of all sales tax receipts or similar tax receipts that are chargeable to customers, if these taxes are separately stated when the customer is charged. This means that Cool Binz franchisees do not have to pay royalties on sales taxes collected from customers, provided they are separately stated.

This is a common practice in franchising, as franchisees typically act as collection agents for sales taxes on behalf of the government. By allowing franchisees to deduct these taxes from gross sales, Cool Binz ensures that franchisees are not paying royalties on funds that are simply being passed through to the taxing authorities. This benefits the franchisee by reducing their royalty obligations and potentially increasing their profitability.

It is important for prospective Cool Binz franchisees to understand the definition of Gross Sales and the allowable deductions, as this will directly impact their royalty payments. Franchisees should ensure that they accurately track and report their sales and sales tax collections, and that they comply with Cool Binz's policies regarding the reporting of Gross Sales. Additionally, franchisees must use the Cool Binz Software, or other Required Software as designated by Cool Binz, for maintaining customer records for the Cool Binz Business.