What sales are excluded from the Gross Sales calculation for a Precision Door Service franchise?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
Gross Sales include the total revenues and receipts from whatever source (whether in the form of cash, credit, agreement to pay, barter, trade or other consideration) that arise, directly or indirectly, from the operation of — or in connection with — your Business whether under any of the Marks or otherwise.
Gross Sales exclude sales taxes collected from customers and paid to the appropriate taxing authority and any other bona fide refunds, rebates or discounts that we authorize in writing.
Gross Sales also exclude sales from any Excluded Services (as defined in a mutually executed Excluded Services Addendum (see Schedule I to the Franchise Agreement).
Source: Item 6 — OTHER FEES (FDD pages 28–36)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, Gross Sales are used to calculate the monthly license fee and local marketing spending. However, certain sales are excluded from this calculation. Specifically, sales taxes collected from customers and remitted to the appropriate taxing authority are excluded from Gross Sales. Additionally, any bona fide refunds, rebates, or discounts that Precision Door Service authorizes in writing are also excluded.
Furthermore, sales from any Excluded Services, as defined in a mutually executed Excluded Services Addendum (Schedule I to the Franchise Agreement), are also excluded from Gross Sales. This addendum outlines specific services that are related to but distinguishable from the core services of the Precision Door Service business.
For a new franchisee, understanding these exclusions is crucial for accurately reporting Gross Sales and calculating the associated fees. It is important to note that if a franchisee currently performs related services and wishes to exclude them, they must be listed as Excluded Services in Schedule I of the Franchise Agreement, with Precision Door Service's consent. If these services are not currently performed but are started in the future, they cannot be excluded. This ensures that the franchise accurately reflects the revenue generated by the Precision Door Service business and that fees are calculated accordingly.