According to the Cream FDD, what is the definition of 'Net Sales'?

According to Cream's 2025 Franchise Disclosure Document, Net Sales are defined as all revenue derived from operating the Cream shop. This includes revenue from various payment methods such as cash, checks, vouchers, tickets, credit and debit cards, barter exchange, trade credit, or other credit transactions. The calculation of Net Sales is after authorized discounts like employee discounts, free birthday scoops, good neighbor discounts, and loyalty rewards are deducted.

However, the definition of Net Sales for Cream excludes certain items. Specifically, all federal, state, or municipal sales, use, or service taxes collected from customers and paid to the appropriate taxing authority are excluded from Net Sales. Additionally, tips and gratuities collected for employees of the Cream shops are also excluded from the Net Sales calculation.

Furthermore, the Cream FDD specifies that if Cream authorizes or requires participation in online group-bought deals, gift certificate or gift card programs, or other similar programs, the payments received for those online group-bought deals, gift certificates, or gift cards will be included in Net Sales upon redemption. Net Sales also include all insurance proceeds received for loss of business and loss of revenue, due to a casualty to or similar event at the Cream shop. This comprehensive definition ensures that all relevant income sources are accounted for when calculating royalties and other fees payable to Cream.