How does Deer Solution define the term 'Gross Sales' within the context of the Accounting Period?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
"Gross Sales" refers to and means the total dollar sales from all business and customers of the Franchised Business and includes the total gross amount of revenues and sales from whatever source derived, whether in form of cash, credit, agreements to pay or other consideration including the actual retail value of any goods or services traded, borrowed, or received by Franchisee in exchange for any form of non-money consideration (whether or not payment is received at the time of the sale), from or derived by Franchisee or any other person or Corporate Entity from business conducted or which started in, on, from or through the Franchised Business and/or Operating Territory, whether such business is/was conducted in compliance with or in violation of the terms of this Agreement. Supplementing the foregoing, Gross Sales further includes the total gross amount of revenues and sales from whatever source derived from and/or derived by Franchisee (including any person and/or Corporate Entity acting on behalf of Franchisee) from business conducted within and/or outside the Operating Territory that is related to the Franchised Business and/or a Competitive Business located and/or operated within the Operating Territory, outside the Operating Territory, and/or otherwise (the foregoing does not constitute approval for Franchisee's operation of a Competitive Business and/or the operation of a Deer Solution Business outside of the Operating Territory). Gross Sales do not include sales or use taxes collected by Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, 'Gross Sales' is defined as the total dollar sales from all business and customers of the Franchised Business. This encompasses all revenues and sales, regardless of the source, and includes cash, credit, agreements to pay, or any other form of consideration. It also includes the retail value of goods or services that the franchisee trades, borrows, or receives in exchange for non-monetary consideration, irrespective of whether payment is received at the time of sale. This definition applies to revenue derived by the franchisee or any other person or entity from business conducted within or through the Franchised Business and/or Operating Territory, regardless of compliance with the agreement terms.
Furthermore, the definition of 'Gross Sales' extends to revenues and sales derived by the franchisee (or anyone acting on their behalf) from business conducted both within and outside the Operating Territory, if it is related to the Franchised Business or a Competitive Business located or operated within the Operating Territory. However, it's important to note that this inclusion does not imply approval for the franchisee to operate a Competitive Business or a Deer Solution Business outside of their designated Operating Territory. The only exclusion from 'Gross Sales' are sales or use taxes collected by the franchisee.
For a prospective Deer Solution franchisee, this definition is crucial because it forms the basis for calculating royalties and other fees payable to the franchisor. Understanding what constitutes 'Gross Sales' ensures accurate reporting and compliance with the franchise agreement. Franchisees should be aware that all revenue streams, including non-cash transactions and business conducted outside their territory if related to their franchise, are generally included in the calculation. This comprehensive definition aims to capture all potential revenue sources, providing a clear basis for financial obligations under the franchise agreement.