How are 'Gross Sales' calculated for a Crown Gold Exchange franchise?

According to the 2024 Franchise Disclosure Document, Crown Gold Exchange defines 'Gross Sales' as the total dollar amount of all sales generated through the Business for a given period. This includes payments for any services or products sold by the franchisee, whether the payment is made in cash or via credit. This is a standard definition used in the franchise industry.

However, the definition of Gross Sales for a Crown Gold Exchange franchise specifically excludes certain items. These exclusions are (i) bona fide refunds to customers, (ii) sales taxes collected by the franchisee, (iii) sales of used equipment not in the ordinary course of business, and (iv) sales of prepaid cards or similar products. It is important to note that while the sale of prepaid cards is excluded, the redemption of these cards is included in Gross Sales.

For a prospective Crown Gold Exchange franchisee, understanding this definition is crucial because royalty fees are typically calculated as a percentage of Gross Sales. Accurately tracking and reporting Gross Sales is essential for compliance with the franchise agreement and to avoid potential disputes with Crown Gold Franchising. Franchisees should pay close attention to what is included and excluded to ensure accurate reporting.