For Moes Southwest Grill, what is included in the definition of 'Net Sales'?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. Net Sales. "Net Sales" means all revenues generated by your Franchised Business or conducted from or with respect to the Franchised Business, whether the sales are evidenced by cash, check, credit, charge, account, barter or exchange. Net Sales includes monies, gift card redemptions, or credit generated by or received from (i) the sale of Approved Products or tangible property of every kind and nature, promotional or otherwise, anywhere and (ii) services performed from, at, or in connection with the Franchised Business, including (x) offpremises services (such as catering and delivery), (y) on-premises services (such as games, gambling machines, or third-party advertising within the Franchised Business), or (z) any other services or activities that use either the System, the Marks, or products that are the same as or similar to the Approved Products. The foregoing list is not intended to provide approval for such activities, which may be conducted only if approved. Unless we specify otherwise in writing, Net Sales shall include all ancillary charges or fees, including delivery fees and other service charges,
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Moe's Southwest Grill Franchise Disclosure Document, Net Sales encompasses all revenue generated by the franchised business, regardless of the payment method. This includes cash, checks, credit, charge accounts, barter, or exchange. Net Sales also includes monies, gift card redemptions, or credit generated or received from the sale of approved products or tangible property, as well as services performed in connection with the franchised business.
Specifically, Net Sales includes revenue from both on-premises and off-premises services. Off-premises services such as catering and delivery are included in the calculation of Net Sales. On-premises services like games, gambling machines, or third-party advertising within the restaurant also contribute to Net Sales. Any other services or activities that utilize the Moe's Southwest Grill system, marks, or products similar to the approved products are also included, provided they are approved by the franchisor.
Furthermore, unless otherwise specified in writing by Moe's Southwest Grill, Net Sales includes all ancillary charges or fees, such as delivery fees and other service charges. This comprehensive definition ensures that all revenue streams associated with the franchise are accounted for when calculating royalty fees and advertising contributions. It is important to note that while 'Gross Sales' includes discounts from coupons, 'Net Sales' does not, as 'Gross Sales' is used only for reporting purposes and not for calculating royalty fees and advertising contributions.