What does 'Gross Revenue' mean as defined in the Franchise Agreement for a Golden Krust Caribbean Restaurant?

According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, 'Gross Revenue' is defined within the context of the Franchise Agreement. It encompasses all revenue derived from operating the restaurant. This includes all amounts received, whether at the premises or away from it, and regardless of the payment method (cash, check, credit card, or credit transactions).

However, there are specific exclusions from this definition. Gross Revenue does not include sales, use, or service taxes collected from customers and remitted to the appropriate taxing authorities. Additionally, it excludes customer refunds, adjustments, credits, and allowances actually made by the restaurant.

For a prospective Golden Krust Caribbean Restaurant franchisee, understanding this definition is crucial because it forms the basis for various financial obligations to the franchisor, such as royalty fees, and is a key metric in assessing the restaurant's financial performance. It is important to note that the Gross Revenue figures presented in Item 19 are not net of costs of goods sold or other operating expenses. Franchisees should carefully consider all potential expenses, such as inventory, labor, rent, and other operating costs, to determine their net income or profit.