Does the Kitchen Solvers definition of 'Gross Sales' include sales tax?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. "Gross Sales" means and includes the total revenues and receipts from the sale of all products and services sold through your Business whether under any of the Trademarks or otherwise and whether the products or services are authorized or unauthorized by us. Gross Sales does not include sales tax.
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, Gross Sales is defined as the total revenue from all products and services sold through the franchisee's business, whether or not the sales were authorized by Kitchen Solvers. However, the definition explicitly excludes sales tax. This means that franchisees do not have to include sales tax when calculating their gross sales figures.
This definition is important because Kitchen Solvers uses gross sales to calculate certain fees and obligations. For example, franchisees must spend 5% of their expected annual gross sales on local and digital marketing, starting from the first full calendar year after signing the agreement. Additionally, during the initial 3-month operating period, franchisees must spend a minimum of $3,000 per month on local marketing, unless otherwise approved in writing by Kitchen Solvers.
By excluding sales tax from the definition of Gross Sales, Kitchen Solvers ensures that franchisees are not paying fees or making marketing expenditures based on money collected for tax purposes. This can help to lower the financial burden on franchisees and make the franchise opportunity more attractive. Franchisees should carefully review the definition of Gross Sales in the Franchise Agreement to fully understand their financial obligations to Kitchen Solvers.