What sales taxes are excluded from the Gross Sales calculation for a Deer Solution franchise?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 3: Gross Sales – "Gross Sales" means the total dollar sales from all business and customers of your Deer Solution 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 you 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 you or any other person or Corporate Entity from business conducted or which started in, on, from or through your Deer Solution Business and/or your operating territory, whether such business is conducted in compliance with or in violation of the terms of the Franchise Agreement. Gross Sales include the total gross amount of revenues and sales from whatever source derived from and/or derived by you including, any person and/or Corporate Entity acting on your behalf, from business conducted within and/or outside your operating territory that is related to your Deer Solution Business and/or a competitive business located and/or operated within your operating territory, outside your operating territory, and/or otherwise. Gross Sales do not include (a) sales taxes that you collect and remit to the proper taxing authority, and (b) authorized promotional discounts that you provide to customers.
Source: Item 6 — OTHER FEES (FDD pages 14–19)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, Gross Sales are defined as the total dollar sales from all business and customers. This includes revenues and sales from any source, whether in cash, credit, or other forms of consideration. It also encompasses the retail value of goods or services traded, borrowed, or received in exchange for non-monetary consideration, regardless of when payment is received. Gross Sales include revenues derived by the franchisee or anyone acting on their behalf, from business conducted within or outside the operating territory, related to the Deer Solution Business or a competitive business.
However, the FDD specifically excludes certain items from the Gross Sales calculation. Sales taxes that the franchisee collects and remits to the proper taxing authority are excluded from Gross Sales. Additionally, authorized promotional discounts that the franchisee provides to customers are also excluded from the Gross Sales figure.
This definition of Gross Sales is important because several fees payable to Deer Solution are calculated as a percentage of Gross Sales, including the Royalty Fee (8% of weekly Gross Sales) and the Brand Development Fund Fee (up to 3% of weekly Gross Sales, currently 2%). Therefore, accurately calculating Gross Sales, and understanding what is excluded, directly impacts the amount of these fees that a franchisee must pay.