For Pearce Bespoke, what is included in the definition of 'Net Sales'?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, Net Sales are defined as Gross Sales less certain deductions. Specifically, Net Sales is calculated by subtracting the amount of any documented refunds and chargebacks provided to customers or retailers in good faith from the Gross Sales.

For a prospective Pearce Bespoke franchisee, understanding this definition is crucial because several fees and payments are based on Net Sales. Accurately tracking and documenting refunds and chargebacks is essential for calculating the correct Net Sales figure, which directly impacts the franchisee's payments to the franchisor and their own revenue.

It is important for franchisees to maintain thorough records of all transactions, including refunds and chargebacks, to ensure accurate financial reporting. This also highlights the importance of adhering to Pearce Bespoke's standards for customer service and product quality to minimize refunds and chargebacks, thereby maximizing Net Sales and overall profitability.