What is excluded from Gross Revenues for a Southern Steer business?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
ater 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.
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 as sales from all products and services sold from, through, at, or in connection with your Southern Steer business, whether cash, credit (regardless of collection), barter, or otherwise. However, there are some exclusions to this definition.
Specifically, the definition of Gross Revenues excludes applicable sales, use, or service taxes. These are taxes collected from customers that are then paid directly to the appropriate taxing authority. Additionally, any bonafide refunds made to customers are also excluded from the calculation of Gross Revenues for a Southern Steer franchise.
Understanding what constitutes Gross Revenues is crucial for franchisees because several fees, such as the royalty fee and brand fund contribution, are calculated as a percentage of Gross Revenues. Therefore, accurately tracking and reporting Gross Revenues, while properly excluding the items mentioned above, is essential for compliance and financial accuracy.