What sales are excluded from 'Gross Sales' calculations for a Crave Cookies franchise?

According to the 2025 Crave Cookies Franchise Disclosure Document, the calculation of gross sales for royalty payments depends on how the sale is made, especially concerning third-party delivery services. If Crave Cookies requires or approves the use of a third-party delivery service, the gross sales calculation is based on the amount the customer pays to the delivery service, excluding any delivery fees, service charges, or gratuities. This means that Crave Cookies franchisees pay royalties on a potentially lower sales figure than the total amount collected by the delivery service.

This policy has significant implications for franchisees. It ensures that franchisees are not paying royalties on revenue that goes directly to the delivery service. This seems beneficial, as it aligns royalty payments with the actual revenue retained by the franchisee from the sale of the cookies themselves.

However, franchisees need to be aware of the specific terms and conditions related to approved delivery services. Crave Cookies retains the right to determine and change the territories where franchisees can offer catering or delivery services. This control allows Crave Cookies to manage market saturation and ensure consistent brand representation, but it also means franchisees must stay informed about any changes that could affect their sales strategies and royalty obligations. Franchisees should seek clarification from Crave Cookies regarding approved delivery services and any associated restrictions or requirements to fully understand the financial implications.