How does Southern Steer define 'Gross Revenues' in the Franchise Agreement?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
withdrawal by EFT no later than the payment due date. If You sign the MUDA, for the second and each subsequent Franchise Agreement You sign for the Southern Steer Business, You will pay the fees at the rate specified in Our then-current form of Franchise Agreement.
- (2) Gross Revenues. Gross Revenues is defined in the Franchise Agreement as sales from all products and services sold from, thru, at or in connection with Your Southern Steer Business, whether cash, credit (regardless of collection), barter or otherwise, exclusive of applicable sales, use or service taxes. Gross Revenues includes sales from all products and services sold for on-Site or off-Site consumption, including without limitation products and services delivered to customers and products and services sold wholesale, if any. The term "Gross Revenues" also includes the proceeds received or realized by You in connection with any business interruption insurance maintained by You or for Your benefit. Excluded from the definition of Gross Revenues are sales, use or gross receipts taxes collected from customers and thereafter paid directly to the appropriate taxing authority and any bonafide refunds made to customers. If You have not timely reported Your Gross Revenues to Us for any reporting period, then We shall be authorized, at Our option, to debit Your account for the higher of: (a) the fees transferred from Your account (or otherwise paid to Us through other means) for the last reporting period for which a report of Your Gross Revenues was provided to Us, or (b) an estimated amount due.
Source: Item 6 — ITEM. 6 OTHER FEES (FDD pages 11–16)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, Gross Revenues are defined in the Franchise Agreement as the total income from all products and services sold through the Southern Steer Business. This includes all sales, whether they are cash, credit (regardless of collection status), or barter transactions, but excludes applicable sales, use, or service taxes. Gross Revenues encompass sales from both on-site and off-site consumption, including deliveries to customers and wholesale sales, if any.
Gross Revenues also include proceeds from any business interruption insurance maintained by the franchisee. However, sales, use, or gross receipts taxes collected from customers and then paid to the appropriate taxing authority, as well as any legitimate refunds made to customers, are excluded from the definition of Gross Revenues.
It's important to note that Southern Steer uses Gross Revenues to calculate royalty fees and other contributions, such as the Brand Fund and Local Advertising Cooperative fees. If a franchisee fails to report Gross Revenues in a timely manner, Southern Steer has the right to debit the franchisee's account for either the fees transferred from the account for the last reporting period with a provided Gross Revenues report or an estimated amount due. This highlights the importance of accurate and timely reporting of Gross Revenues to avoid potential financial penalties or discrepancies.