How is revenue presented by Crepe De Licious with respect to sales, use, and excise taxes?

According to Crepe De Licious's 2025 Franchise Disclosure Document, the company excludes amounts collected on behalf of third parties from the transaction price. Specifically, revenue is presented net of any sales, use, and excise taxes collected from its customers. This means that when Crepe De Licious reports its revenue, it does not include the taxes it collects from customers and then remits to the government.

For a prospective Crepe De Licious franchisee, this is important because it clarifies how gross sales are calculated for royalty and other fee purposes. The franchisee will not pay royalties on the portion of sales revenue that represents collected taxes. This ensures that franchisees are only paying royalties on the actual revenue retained by the business, not on pass-through tax amounts.

This accounting practice is fairly standard in the franchise industry, as it provides a clearer picture of the company's and franchisees' actual earnings. Franchisees should ensure they understand how their franchisor handles sales tax and other similar taxes to accurately calculate royalties and assess the overall financial performance of their Crepe De Licious franchise.