What is excluded from the calculation of 'Gross Revenues' for a Crepe De Licious franchise?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
The term "Gross Revenues" means the revenues you receive from the sale of all products and services sold at, from, or through your Crepe de licious Business, whether or not sold or performed at or from the Crepe de licious Business, including the full redemption value of any gift certificate or coupon sold for use at the Crepe de licious Business (fees retained by or paid to third party sellers of such gift certificates or coupons are not excluded from this calculation), and all other income and revenue of every other kind and nature related to the Crepe de licious Business or Crepe de licious Business operation, whether for cash or credit, and regardless of collection in the case of credit, but not including: (a) any sales taxes or other taxes you collect from customers for, and thereafter pay directly to, the appropriate taxing authority; or (b) any bona fide refunds you make to customers.
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the calculation of Gross Revenues excludes specific items. Gross Revenues encompass all revenues from the sale of products and services at or through the Crepe De Licious business, including the full redemption value of gift certificates or coupons. This includes all income and revenue related to the Crepe De Licious business, whether in cash or credit, and regardless of whether payment has been collected.
However, there are two key exclusions from the Gross Revenues calculation. The first exclusion is any sales taxes or other taxes that the franchisee collects from customers and then pays directly to the appropriate taxing authority. The second exclusion is any bona fide refunds that the franchisee makes to customers.
Crepe De Licious franchisees should understand these exclusions, as Gross Revenues are the basis for calculating royalty fees and advertising fees. Accurate reporting of Gross Revenues, excluding these specific items, is essential for compliance with the Franchise Agreement and to avoid potential audits or penalties.