What is included in the definition of 'Gross Sales' for a Kitchen Solvers franchise?

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.

For a prospective Kitchen Solvers franchisee, this definition is important because it clarifies what revenue is subject to royalty fees and other calculations, such as the local marketing expenditure requirements. The inclusion of all sales, even those not explicitly authorized, ensures that Kitchen Solvers receives a percentage of all revenue generated by the business, incentivizing franchisees to focus on growing their overall sales volume.

It is fairly standard practice in franchising to base royalties on gross sales, but franchisees should be aware of exactly what is included in the gross sales figure. The Kitchen Solvers definition is comprehensive, encompassing virtually all revenue streams, but it does provide the benefit of excluding sales tax, which simplifies accounting and avoids overpayment of fees. Franchisees should keep accurate records of all sales to ensure compliance with the franchise agreement and accurate calculation of royalty payments.