What sales are included in the Gross Sales calculation for a Floyds 99 franchise?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.2 Gross Sales. "Gross Sales" shall mean and include the aggregate amount of all sales of services, products or merchandise of every kind or nature sold from, at or in connection with or arising out of the operation or conduct of business at the Barbershop or, if the Franchisee is an entity, arising out of the operation or conduct of any business by such entity, including sales made at or away from the Barbershop, whether for cash or credit, and any revenues from vending machines and from sales of promotional items such as caps, T-shirts, jackets, and similar items, less merchandise returns for which refunds are made, and less service refunds, provided that no refund shall exceed the sales price, but excluding all: (i) federal, state or municipal sales or service taxes collected from clients and paid to the appropriate taxing authority; (ii) discounts that have been approved in advance by the Franchisor in writing; and (iii) other exclusions as may be authorized in writing by the Franchisor.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, "Gross Sales" include the total amount of all sales of services, products, or merchandise of any kind sold from the Barbershop. This includes sales made both at and away from the Barbershop, whether paid in cash or credit. Gross sales also incorporate revenues from vending machines and sales of promotional items like caps, T-shirts, and jackets.
However, certain items are excluded from the Gross Sales calculation. These exclusions are: (i) federal, state, or municipal sales or service taxes collected from clients and paid to the appropriate taxing authority; (ii) discounts that have been approved in advance by Floyds 99 in writing; and (iii) other exclusions as may be authorized in writing by Floyds 99.
For a prospective Floyds 99 franchisee, understanding this definition is crucial because the weekly royalty, which is 6% of Gross Sales, is calculated based on this amount. Accurately tracking and reporting all sales, while properly accounting for approved discounts, taxes, and authorized exclusions, is essential for compliance with the franchise agreement and for calculating royalty payments.