For Hck Hot Chicken, what is the definition of 'Gross Sales' regarding coupons and discounts?

According to Hck Hot Chicken's 2025 Franchise Disclosure Document, Gross Sales have specific inclusions and exclusions, especially concerning coupons and discounts. Gross Sales include all revenues received by the franchisee, whether in cash, credit, barter, or other means of exchange, for any goods, merchandise, services, or products sold in or from the restaurant. This also encompasses proceeds from business interruption insurance.

However, Gross Sales exclude certain items. These exclusions include sales taxes, value-added tax, excise tax, or other duties charged to customers based on sales at the restaurant. Tips, gratuities, or service charges paid directly by customers to employees, or paid to the franchisee and promptly turned over to employees, are also excluded. Additionally, proceeds from isolated sales of equipment and trade fixtures that are not part of the regular products and services offered and do not materially affect the restaurant's ongoing operation are excluded from Gross Sales.

Regarding coupons and discounts, the amount discounted from the purchase price of items sold using approved coupons or other discounts is excluded from Gross Sales. Similarly, sales of prepaid gift cards and certificates are excluded. However, franchisees must pay Continuing Royalties (6% of Gross Sales) and Brand Fund Contributions (currently 2% of weekly Gross Sales, potentially increasing to 4%) on sales resulting from the redemption of gift cards and/or certificates at their restaurants. This means that while the initial sale of a gift card isn't included in Gross Sales, the revenue generated when that gift card is used is subject to royalty and brand fund contributions.