What is included in the definition of 'Gross Revenue' for a Kitchen Solvers franchise, and what is specifically excluded?

According to Kitchen Solvers' 2025 Franchise Disclosure Document, "Gross Revenue" is defined as the total revenues and receipts from all products and services sold through each Item 19 Outlet. This encompasses all income generated from sales within the franchised location. However, the definition specifically excludes sales tax from the calculation of Gross Revenue. This means that while franchisees must collect and remit sales tax, these amounts are not considered part of their revenue for the purposes of financial reporting and royalty calculations.

Understanding the components of Gross Revenue is crucial for prospective Kitchen Solvers franchisees as it directly impacts their financial performance and royalty obligations. The Item 19 Outlets are the 31 of 59 franchised outlets that responded to the Item 19 survey. By excluding sales tax, Kitchen Solvers ensures that franchisees are not paying royalties on funds that are simply pass-through payments to tax authorities. This is a common practice in franchising, as it provides a clearer picture of the actual revenue generated by the business itself.

It is important for potential franchisees to note that while Gross Revenue provides a top-line view of sales, it does not reflect the profitability of the business. Franchisees must also consider their operating expenses, such as materials, installation, royalty fees, and marketing expenses, to determine their net income or profit. The FDD encourages prospective franchisees to develop their own business plan and consult with financial advisors to fully understand the costs and expenses associated with operating a Kitchen Solvers franchise.