factual

For reporting purposes, how does Moes Southwest Grill define 'Gross Sales'?

Moes_Southwest_Grill Franchise · 2025 FDD

Answer from 2025 FDD Document

For purposes of reporting to us only and not for purposes of calculating Royalty Fees and Advertising Contributions due, "Gross Sales" means Net Sales, plus the amount of any discounts from redemptions of coupons, and other reductions made to calculate Net Sales.

Source: Item 22 — Contracts (FDD page 92)

What This Means (2025 FDD)

According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, the definition of "Gross Sales" is specific to reporting requirements and differs from how it's calculated for royalty fees and advertising contributions. For reporting purposes only, Gross Sales is defined as Net Sales plus any discounts from redemptions of coupons and other reductions that were used to calculate Net Sales.

This means that when a Moe's Southwest Grill franchisee reports their Gross Sales to the franchisor, they need to add back the value of any discounts or coupons they accepted from customers. This likely provides Moe's Southwest Grill with a clearer picture of the total revenue generated before any promotional discounts are applied.

It is important to note that this definition is solely for reporting to Moe's Southwest Grill and does not affect the calculation of royalty fees or advertising contributions, which are likely based on a different metric such as Net Sales. Franchisees should pay close attention to the distinction between these two calculations to ensure accurate reporting and payment of fees.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.