What is included in Gross Revenues for a Southern Steer franchise?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 include sales from all products and services sold from the Southern Steer business, whether the transaction involves cash, credit (regardless of collection status), barter, or other forms of payment. This encompasses all sales made on-site or off-site, including products delivered to customers and wholesale sales, if applicable. The definition extends to proceeds received from business interruption insurance.
However, there are specific exclusions from the Gross Revenues calculation. Sales, use, or gross receipts taxes collected from customers and then directly paid to the appropriate taxing authority are excluded. Additionally, any legitimate refunds provided to customers are also subtracted from the Gross Revenues figure.
Southern Steer franchisees should pay close attention to this definition, as it directly impacts the calculation of royalty fees and other contributions. Ensuring accurate reporting of Gross Revenues is crucial to avoid potential discrepancies and maintain compliance with the franchise agreement. Failure to report Gross Revenues in a timely manner may result in Southern Steer estimating the amount due and debiting the franchisee's account accordingly.