For a Southern Steer franchise, what is included in the definition of 'Gross Sales'?

According to the 2025 Southern Steer Franchise Disclosure Document, "Gross Sales" is defined as the total revenue a Southern Steer business derives from selling its products and services. This includes revenue from meats and cheeses, prepared meals, grocery and dry goods, as well as wine and beer. This definition provides clarity for franchisees in understanding what constitutes revenue for the purpose of calculating royalties and other financial metrics.

Notably, the definition of "Gross Sales" for Southern Steer does not exclude Loyalty Customer Discounts. These discounts are instead deducted as part of Miscellaneous Expenses. This means that the initial revenue calculation includes sales before these discounts are applied, which could impact the overall financial picture presented to franchisees.

Understanding the components of Gross Sales is crucial for a prospective Southern Steer franchisee, as it directly affects royalty payments and financial performance evaluations. Franchisees should pay close attention to how deductions and expenses are categorized, as this can influence reported profitability and overall financial health. By including Loyalty Customer Discounts in Miscellaneous Expenses rather than excluding them from Gross Sales, Southern Steer provides a transparent view of total revenue before these discounts are factored in.