What is included in the definition of 'Gross Revenues' for a Crepe De Licious business?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
- Gross Revenues. 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. Gross Revenues are deemed received by you at the time the products or services from which they were derived are delivered or rendered, or at the time the relevant sale takes place, whichever occurs first, regardless of whether final payment (e.g., collection on an account receivable) actually has been received by you. If you have not timely reported your Crepe de licious Business' Gross Revenues to us for any reporting period, then we shall be authorized, at our option, to debit your account for the higher of: (a) the fees transferred from your account for the last reporting period for which a report of your Crepe de licious Business' Gross Revenues was provided to us; or (b) an estimated amount due.
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, "Gross Revenues" encompasses all income from the sale of products and services at the Crepe De Licious business. This includes sales made at, from, or through the business, regardless of whether they occur directly at the physical location. The definition extends to the full redemption value of gift certificates or coupons, even if third-party sellers retain fees from those sales. All other income related to the Crepe De Licious business operation is also included, whether received in cash or credit, and regardless of whether payment has been collected for credit sales.
However, the definition of "Gross Revenues" does not include sales taxes or other taxes collected from customers that are then paid to the appropriate taxing authority. Additionally, bona fide refunds made to customers are excluded from gross revenues. Crepe De Licious considers revenues to be received when the products or services are delivered or rendered, or when the sale takes place, whichever happens first. This means that even if a franchisee hasn't received the actual payment, the revenue is still counted at the time of sale or service.
Crepe De Licious has the right to debit a franchisee's account if they fail to report their Gross Revenues in a timely manner. In such cases, Crepe De Licious can debit the higher of either the fees transferred from the franchisee's account for the last reporting period with a provided Gross Revenues report, or an estimated amount due. This policy underscores the importance of accurate and timely reporting of Gross Revenues to avoid potential financial penalties and maintain compliance with the franchise agreement.