What is included in the calculation of 'Gross Sales' for a Crave Cookies franchise?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Gross Sales" means the total dollar amount of all sales generated through the Business for a given period, including, but not limited to, payment for any services or products sold by Franchisee, whether for cash or credit. Gross Sales does not include (i) bona fide refunds to customers, (ii) sales taxes collected by Franchisee, (iii) sales of used equipment not in the ordinary course of business, or (iv) sales of prepaid cards or similar products (but the redemption of any such card or product will be included in Gross Sales).
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, 'Gross Sales' is defined as the total dollar amount of all sales generated through the Business for a given period. This includes payments for any services or products sold by the franchisee, whether the payment is made in cash or via credit. This is a standard calculation for franchise systems.
However, the FDD also specifies certain exclusions from the 'Gross Sales' calculation. These exclusions include: bona fide refunds to customers, sales taxes collected by the franchisee, sales of used equipment not in the ordinary course of business, and sales of prepaid cards or similar products. It is important to note that while the sale of prepaid cards is excluded from gross sales, the redemption of these cards is included in the gross sales calculation.
For a prospective Crave Cookies franchisee, understanding this definition is crucial because the royalty fee and marketing fund contributions are calculated as a percentage of Gross Sales. Therefore, accurately tracking and reporting sales, while also accounting for the allowable exclusions, will directly impact the franchisee's financial obligations to Crave Cookies Franchising.