For a Kitchen Solvers franchise, what is included in the definition of 'Gross Sales'?

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. This includes sales made under the Kitchen Solvers trademarks or otherwise, regardless of whether the products or services are authorized by the franchisor. However, sales tax is excluded from the calculation of Gross Sales.

This definition is important because Kitchen Solvers franchisees pay ongoing fees and are often required to contribute to marketing funds based on a percentage of their Gross Sales. Therefore, a clear understanding of what constitutes Gross Sales is crucial for accurately calculating these payments. For example, the franchisee must spend 5% of their expected annual gross sales on local and digital marketing, and during the initial 3-month operating period of your business, a minimum of $3,000 per month.

The inclusion of all revenues, even from unauthorized products or services, in the Gross Sales calculation means that Kitchen Solvers franchisees cannot avoid paying royalties or marketing fees by selling non-approved items. The exclusion of sales tax from Gross Sales is a standard practice in franchising, as franchisees typically remit sales tax directly to the government and it is not considered part of the business's revenue.