Are sales taxes included in the calculation of 'Gross Sales' for a Kitchen Solvers franchise?

According to Kitchen Solvers' 2025 Franchise Disclosure Document, sales taxes are not included in the calculation of Gross Sales. Gross Sales are defined as the total revenues and receipts from the sale of all products and services sold through your Kitchen Solvers Business, whether under any of the Trademarks or otherwise, and whether the products or services are authorized or unauthorized by Kitchen Solvers.

This definition is important for Kitchen Solvers franchisees because Gross Sales figures are often used to calculate royalty fees, marketing contributions, and other financial obligations to the franchisor. By excluding sales tax from the Gross Sales calculation, Kitchen Solvers ensures that franchisees are not paying fees on money that is collected for and remitted to government entities.

For a prospective Kitchen Solvers franchisee, this exclusion can lead to a slightly lower financial burden, as the fees owed to Kitchen Solvers will be based on the actual revenue retained by the business rather than the total amount collected from customers. This is a fairly standard practice in franchising, as most franchisors exclude sales tax from gross sales calculations.