What constitutes 'Gross Sales' for a Fast Fix Jewelry And Watch Repairs franchise?
Fast_Fix_Jewelry_And_Watch_Repairs Franchise · 2025 FDDAnswer from 2025 FDD Document
- Definitions: As used in this Disclosure Document, the following capitalized terms have the meanings given to them below:
"Gross Sales" means the entire amount of the sales price of all goods, wares, merchandise or services sold or rendered from your Service Center (including all precious metal sales to refiners), whether for cash, charge, credit card or time-sale basis, without reserve or deduction for inability or failure to collect, including all orders for goods or services, whether by mail, telephone, internet or otherwise, and whether the orders will be filled from your Service Center or elsewhere, so long as you in the normal course of business would attribute the orders or sales to your Business. The following are not included in Gross Sales: (a) the amount of refunds, allowances or discounts to customers, provided the same had been previously included in Gross Sales and provided further that if the refunds, allowances or discounts are in the form of credits to customers, the credits will be included in Gross Sales when used by the customers in the future; and (b) the amount of any excise or sales tax levied on retail sales and paid to the appropriate governmental authority, provided that specific record is made at the time of each sale which clearly indicates that the amount is expressly charged to the customer.
Source: Item 6 — OTHER FEES (FDD pages 11–14)
What This Means (2025 FDD)
According to Fast Fix Jewelry And Watch Repairs's 2025 Franchise Disclosure Document, Gross Sales are defined as the total revenue generated from all goods, wares, merchandise, or services sold or rendered at the Service Center. This includes all precious metal sales to refiners, regardless of whether the payment is made in cash, via charge, credit card, or on a time-sale basis. Gross Sales also encompass all orders for goods or services, whether received by mail, telephone, internet, or other means, and regardless of where the orders are fulfilled, as long as the sales are normally attributed to the franchisee's business.
However, the definition of Gross Sales for a Fast Fix Jewelry And Watch Repairs franchise does allow for some exclusions. Specifically, refunds, allowances, or discounts provided to customers are not included in Gross Sales, provided they were previously included and are in the form of credits that customers will use in the future. Additionally, excise or sales taxes levied on retail sales and paid to the appropriate governmental authority are excluded, as long as there is a specific record made at the time of each sale that clearly indicates the amount is expressly charged to the customer.
Understanding the definition of Gross Sales is crucial for a prospective Fast Fix Jewelry And Watch Repairs franchisee because it directly impacts the calculation of certain fees, such as the Local Advertising Commitment (LAC). The LAC is 1% of monthly Gross Sales, which increases to 2% if Fast Fix Jewelry And Watch Repairs discontinues the Brand Fund. Moreover, the Audit Fee may be imposed if an audit reveals that the franchisee understated Gross Sales by 2% or more. Therefore, accurately tracking and reporting Gross Sales is essential for compliance and financial management.