Are sales taxes included in the definition of 'Gross Revenues' for a Dryject franchise?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
You must report to us your monthly Gross Revenues by the 15th of the following month. The term "Gross Revenues" means the amount of all receipts for the sale of any products or services by your Franchised Business and income of every other kind and nature related to the Franchised Business, whether for products or services, cash, exchange, or credit, regardless of collection in a case of credit, less any refunds; provided, however, that "Gross Revenues" will not include any sales taxes or other taxes collected by Franchise Owner for transmittal to the appropriate taxing authority.
Source: Item 6 — OTHER FEES (FDD pages 14–18)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the definition of "Gross Revenues" specifically excludes sales taxes. Gross Revenues are defined as the total amount of receipts from the sale of products or services by the Dryject franchised business, including income of every kind related to the business, whether in cash, exchange, or credit, less any refunds.
This means that when calculating the royalty service fees and national marketing fund contributions, a Dryject franchisee does not need to include any sales taxes they collect and remit to the appropriate taxing authority. This is a benefit to the franchisee, as it lowers the base amount on which these fees are calculated.
For example, if a Dryject franchisee generates $100,000 in sales during a month, and $8,000 of that amount is sales tax, the franchisee will only pay royalty and marketing fees on the $92,000 net revenue. This exclusion is a fairly standard practice in franchising, as franchisees typically act as collection agents for sales taxes on behalf of the government.