For a Pearce Bespoke franchise, what is included in the definition of 'Gross Sales'?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, "Gross Sales" is defined as the total revenue a franchisee receives from selling goods and services. This includes all sales, whether paid for with cash, check, credit card, or through trade. Gross sales also encompass sales made via the internet and wholesale transactions. However, gross sales do not include sales tax collected from customers that is then paid to the appropriate tax authorities.

Understanding the definition of gross sales is crucial for a prospective Pearce Bespoke franchisee because several fees and obligations are calculated based on this figure. For instance, franchisees may need to contribute a percentage of their gross sales to cooperative advertising programs. Additionally, the franchisor calculates weekly gross sales to determine the franchisee's payments and deductions.

Furthermore, franchisees are required to maintain accurate daily records of their gross sales and provide weekly statements to the franchisor. These statements must be signed and verified, and submitted by Wednesday of each week for the preceding week. The franchisor retains the right to modify the forms and methods used for reporting gross sales and may impose additional record-keeping procedures.

It is also important to note that Pearce Bespoke franchisees may have to pay an encroachment fee of 20% of gross sales attributed to sales outside of their designated territory, highlighting the importance of adhering to territorial restrictions and obtaining prior consent for servicing non-exclusive customers.