For Pearce Bespoke, what is deducted from Gross Sales to calculate Net Sales?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, Net Sales are calculated by subtracting specific items from Gross Sales. Gross Sales represents the total revenue received from the sale of goods and services, whether in cash, check, credit card, or trade, related to the Pearce Bespoke franchise. This includes sales through the internet and wholesale transactions but excludes sales tax collected from customers and remitted to the appropriate tax authorities.

To arrive at Net Sales, Pearce Bespoke deducts the amount of any documented refunds and chargebacks provided to customers or retailers in good faith from the Gross Sales. This means that if a customer receives a refund or a chargeback is issued, the amount of that refund or chargeback is subtracted from the total Gross Sales to determine the Net Sales figure.

This Net Sales figure is important because it is used to calculate certain fees payable to Pearce Bespoke. Franchisees should maintain accurate records of all refunds and chargebacks to ensure accurate calculation of Net Sales and associated fees. Understanding the distinction between Gross Sales and Net Sales is crucial for franchisees to manage their finances and meet their obligations under the franchise agreement.