What is excluded from 'Gross Sales' calculations for a Crown Gold Exchange franchise?

According to Crown Gold Exchange's 2024 Franchise Disclosure Document, 'Gross Sales' for the purpose of calculating royalties and other fees, has some specific exclusions. It's important for prospective franchisees to understand what constitutes 'Gross Sales' because this figure directly impacts the amount of royalties and other fees owed to the franchisor.

Specifically, the following items are not included in the calculation of Gross Sales: bona fide refunds to customers, sales taxes collected by the franchisee, sales of used equipment not in the ordinary course of business, and sales of prepaid cards or similar products. However, it is important to note that the redemption of any prepaid cards or similar products will be included in Gross Sales.

This definition provides clarity for franchisees, ensuring they are not paying royalties on amounts that pass through the business, such as sales tax, or on infrequent sales of equipment. Franchisees should keep accurate records of these exclusions to ensure accurate reporting of Gross Sales and to avoid any discrepancies with the franchisor. Understanding these exclusions can help a franchisee more accurately forecast revenue and manage their financial obligations to Crown Gold Exchange.