For Gold Star, what is included in the definition of 'Gross Sales' as used in Tables 1 and 2?

According to Gold Star's 2025 Franchise Disclosure Document, the term "Gross Sales," as it is used in Tables 1 and 2, refers to the total revenue a franchise generates from the sale of its goods and services. However, this figure is calculated after subtracting sales tax, discounts, allowances, and returns. This definition is important for prospective franchisees to understand because it clarifies what is included in the financial performance representations provided in the FDD.

Specifically, the financial data presented in Tables 1 and 2 is derived from sales reports submitted by Gold Star franchisees. It's important to note that these reports are not audited or independently verified by Gold Star. However, Gold Star states that substantiation of the data used to prepare this information will be made available to you in writing upon reasonable request. This means that while the data is franchisee-reported and unaudited, Gold Star is willing to provide supporting documentation if requested.

It is also important to note that the financial data in Tables 1 and 2 pertains exclusively to franchised outlets and does not incorporate data from any company-owned Gold Star locations. This distinction is crucial for prospective franchisees as it provides a clearer picture of the performance of franchised businesses specifically, without the potential influence of company-owned store performance. Understanding these nuances of how "Gross Sales" is defined and reported is essential for making informed decisions about investing in a Gold Star franchise.