What is included in the definition of 'Gross Sales' for a Pearce Bespoke franchise?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, "Gross Sales" encompasses a broad range of income sources for the franchise. It includes all revenue generated from the sale of products and services, as well as any other income related to the business. This includes transactions made through cash, credit, trade, barter, or any other form of value received.

Notably, the definition of Gross Sales applies regardless of whether payment has been collected for credit transactions. It also applies even if Pearce Bespoke franchisees have contracted with third parties to provide certain services. This means that all revenue generated from the business's operations counts towards Gross Sales, irrespective of who performs the services or how the payments are structured.

The only deduction allowed from Gross Sales is for bona fide refunds given to customers in the ordinary course of business. This means that any refunds issued as part of normal business operations are subtracted from the total revenue to arrive at the Gross Sales figure. This definition is important because many of the franchisee's financial obligations to Pearce Bespoke, such as royalty payments, are calculated as a percentage of Gross Sales. Therefore, understanding what constitutes Gross Sales is crucial for managing the franchise's finances and fulfilling contractual obligations.