What is excluded from 'Gross Sales' when calculating revenue for a Crave Cookies franchise?

According to Crave Cookies' 2025 Franchise Disclosure Document, when a third-party delivery service is used and approved or required by Crave Cookies, the calculation of Gross Sales for royalty purposes excludes specific charges. Gross Sales will be based on the amount the customer pays to the delivery service, specifically not counting any delivery fee, service charge, or gratuity that the customer pays. This means that Crave Cookies franchisees pay royalties on a net amount received by the third-party delivery service, rather than the total amount charged to the customer.

This policy potentially benefits franchisees by reducing the royalty fees owed on transactions involving third-party delivery services. Since delivery fees, service charges, and gratuities are excluded from the Gross Sales calculation, the royalty percentage is applied to a smaller base revenue figure. This could make using third-party delivery services more financially viable for the franchisee.

However, it is important for prospective franchisees to understand the conditions under which this exclusion applies. It is only applicable if Crave Cookies approves or requires the use of a third-party delivery service. If a franchisee independently chooses to use a delivery service without Crave Cookies's explicit approval, the standard Gross Sales calculation (which is not defined in the provided excerpts) would likely apply, potentially increasing the royalty fees owed on those transactions. Franchisees should seek clarity from Crave Cookies regarding approved delivery services and the specific reporting requirements for sales made through these services to ensure compliance and accurate royalty payments.