What is included in the definition of 'Gross Restaurant sales' for Crisp & Green, as it pertains to Item 19?

According to Crisp & Green's 2024 Franchise Disclosure Document, 'Gross Restaurant sales' is defined within Item 19 as the total revenue derived from the sale of goods, less sales tax. This definition is specifically used for the financial performance representations in Item 19. It's important to note that this definition differs from the general definition of 'Gross Sales' used elsewhere in the document and in the Franchise Agreement.

Specifically, the Item 19 definition of 'Gross Restaurant sales' does not exclude discounts, allowances, or returns, including those provided through loyalty programs. This means that the revenue figures presented in Item 19's financial performance representations reflect the actual sales revenue before any deductions for discounts or returns.

For a prospective Crisp & Green franchisee, this distinction is crucial because it provides a clearer picture of the restaurant's overall sales performance. While the standard 'Gross Sales' definition might be used for calculating royalties or other fees, the 'Gross Restaurant sales' figure in Item 19 offers insight into the total revenue generated before accounting for any reductions. This can help franchisees better understand the potential revenue-generating capacity of a Crisp & Green location. Franchisees should be aware of the differences in these definitions and how they impact various aspects of the franchise agreement and financial reporting.