Are internet and wholesale transactions included in the Gross Sales calculation for a Pearce Bespoke franchise?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
The term "Gross Sales" means the total amount of all revenues Franchisee receives from the sale of goods and services, whether for cash or by check, credit card, or trade, in connection with the Pearce Bespoke Franchise, less customer refunds and returns. Gross Sales will include any sales permitted through the internet and wholesale transactions. Gross Sales will not include sales tax collected from customers and actually paid to appropriate tax authorities.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, Gross Sales include revenues from internet and wholesale transactions. Gross Sales are used to calculate certain fees payable to Pearce Bespoke.
Gross Sales are defined as the total revenue a franchisee receives from selling goods and services related to the Pearce Bespoke franchise. This includes cash, checks, credit card payments, and trade transactions. However, sales tax collected from customers and remitted to the appropriate tax authorities is excluded from Gross Sales.
Net Sales are calculated by subtracting documented refunds and chargebacks provided to customers or retailers from the Gross Sales. Franchisees are required to maintain accurate daily records of Gross Sales and provide weekly statements to Pearce Bespoke, using the forms and methods that Pearce Bespoke requires.