Are refunds deducted from gross sales for a Pearce Bespoke franchise?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, gross sales are calculated by deducting bona fide refunds from the total revenue. This means that the gross sales figure reported by a Pearce Bespoke franchise will reflect the actual revenue received after accounting for any refunds issued to customers in the ordinary course of business. This is a common practice in franchising and retail, as it provides a more accurate representation of a business's financial performance.

For a prospective Pearce Bespoke franchisee, this definition of gross sales is important for understanding the financial performance representations provided in Item 19 of the FDD. When reviewing the average gross revenue figures for existing Pearce Bespoke outlets, it's crucial to recognize that these figures already account for customer refunds. This ensures that franchisees are evaluating the potential revenue based on net sales rather than inflated gross sales numbers.

Furthermore, the FDD specifies that "Gross Sales" includes all revenue from the sale of products and services, as well as all other income related to the business, regardless of whether it's cash, credit, or other forms of payment. It also includes revenue even if third parties are contracted to provide certain services. This comprehensive definition, combined with the deduction of refunds, provides a clear picture of what constitutes gross sales for a Pearce Bespoke franchise, which is essential for financial planning and performance tracking.