Are sales of used equipment included in the Gross Sales calculation for a Crave Cookies franchise?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
"Gross Sales" is defined in our franchise agreement as the total dollar amount of all sales generated through your business for a given period, including, but not limited to, payment for any services or products, including but not limited to, all revenues from sales at the premises and from direct delivery, catering, and/or delivery services through a third party, sold by you, whether for cash or credit. Gross Sales does not include (i) bona fide refunds to customers, (ii) sales taxes collected, (iii) sale of used equipment not in the ordinary course of business, (iv) sales of prepaid cards or similar products (but the redemption of any such card or product will be included in Gross Sales), or (v) delivery expenses or third-party platform charges.
Source: Item 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, gross sales do not include revenue from the sale of used equipment not in the ordinary course of business. Gross sales are used to calculate royalty fees, so this exclusion benefits the franchisee by reducing the royalty fees owed to Crave Cookies.
Gross sales for a Crave Cookies franchise are defined as the total dollar amount of all sales generated through the business for a given period. This includes payments for services or products, such as revenues from sales at the premises, direct delivery, catering, and delivery services through a third party, whether for cash or credit.
Besides sales of used equipment not in the ordinary course of business, other exclusions from gross sales include bona fide refunds to customers, sales taxes collected, sales of prepaid cards (although the redemption of such cards is included), and delivery expenses or third-party platform charges. This definition provides clarity for franchisees in calculating their gross sales and royalty obligations to Crave Cookies.