For Fast Fix Jewelry And Watch Repairs, what is included in the definition of 'Gross Sales'?
Fast_Fix_Jewelry_And_Watch_Repairs Franchise · 2025 FDDAnswer from 2025 FDD Document
4.4. Gross Sales Defined. The term "Gross Sales" means the entire amount of the sales price of all goods, wares, merchandise or services sold or rendered whether for cash, charge, credit card or time-sale basis (including all precious metal sales to refiners), 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 or not such order be filled from the Service Center or elsewhere, so long as Franchisee in the normal course of business would attribute such orders or sales to the Franchised Business. The following shall not be 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 such refunds, allowances or discounts are in the form of credits to customers, such credits shall be included in Gross Sales when used by such customers in the future; and
- (b) the amount of any excise or sales tax levied on retail sales and payable over to the appropriate governmental authority (but only to the extent actually paid when due to the appropriate
Source: Item 22 — CONTRACTS (FDD page 37)
What This Means (2025 FDD)
According to Fast Fix Jewelry And Watch Repairs' 2025 Franchise Disclosure Document, "Gross Sales" is defined as the total sales price of all goods, wares, merchandise, or services sold or rendered. This includes sales made for cash, charge, credit card, or time-sale basis, and also encompasses all precious metal sales to refiners. The definition does not allow for deductions due to inability or failure to collect payments. Gross sales also include all orders for goods or services, whether received by mail, telephone, internet, or other means, regardless of whether the order is fulfilled from the service center or elsewhere, as long as the franchisee would normally attribute such orders or sales to the franchised business.
However, the 2025 FDD specifies certain items that are excluded from the calculation of Gross Sales for Fast Fix Jewelry And Watch Repairs. These exclusions include the amount of refunds, allowances, or discounts provided to customers, provided that these amounts were previously included in Gross Sales. If these refunds, allowances, or discounts are in the form of credits to customers, they are included in Gross Sales when the customer uses them in the future. Additionally, the amount of any excise or sales tax levied on retail sales and payable to the appropriate governmental authority is excluded, but only to the extent that it is actually paid when due and a specific record is made at the time of each sale which clearly indicates that such amount is expressly charged to the customer.
For a prospective Fast Fix Jewelry And Watch Repairs 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 for determining the franchisee's financial obligations to the franchisor. Franchisees should pay close attention to the inclusions and exclusions to ensure accurate reporting and avoid potential disputes with Fast Fix Jewelry And Watch Repairs.