Disclaimer:
*Financial information presented in a subset, and we refer you to Item 19 of the Class 101's franchise disclosure document for a complete financial performance representation disclosure. This information reflects the average Gross Sales for reporting Class 101 franchised territories that were in the Top 25% or Top Quartile that operated continuously throughout the 12 calendar months of 2024. Of these 10 franchisees in the Top 25%, 4 franchisees, or 40% of this group, met or exceeded the group’s average Gross Sales of $392,938. Some franchises have earned this amount. Your individual results may differ. There is no assurance that you’ll earn as much. “Gross Sales” means the dollar aggregate of: (1) the sales price of all products, services, membership fees, merchandise and other items sold, and the charges for all services you perform, whether made for cash, on credit or otherwise, without reserve or deduction for inability or failure to collect, including sales and services (A) originating at the Franchised Business premises even if delivery or performance is made offsite from the Franchised Business premises, (B) placed by mail, facsimile, telephone, the internet and similar means if received or filled at or from the Franchised Business premises, and (C) that you in the normal and customary course of your operations would credit or attribute to the operation of the Franchised Business; and (2) all monies, trade value or other things of value that you receive from Franchised Business operations at, in, or from the Franchised Business premises that are not expressly excluded from Gross Sales, including but not limited to the redemption of approved gift cards/certificates, stored value cards, and loyalty program benefits (the initial sales or reloading of gift cards shall not be included in the calculation of Gross Sales) pursuant to the Customer Card Programs. Gross Sales does not include:
- (1) the exchange of merchandise between Franchised Businesses (if you operate multiple franchises) if the exchanges are made solely for the convenient operation of your business and not for the purpose of depriving us of the benefit of a sale that otherwise would have been made at, in, on or from the Franchised Business premises;
- (2) returns to shippers, vendors, or manufacturers;
- (3) sales of fixtures or furniture after being used in the conduct of the Franchised Business;
- (4) the sale of gift certificates and stored value cards (the redemption value will be included in Gross Sales at the time of redemption);
- (5) insurance proceeds;
- (6) sales to employees at a discount (provided such discounts will not exceed 1.5% of Gross Sales during any reporting period);
- (7) cash or credit refunds for transactions included within Gross Sales (limited, however, to the selling price of merchandise returned by the purchaser and accepted by you);
- (8) the amount of any city, county, state or federal sales, luxury or excise tax on such sales that is both (A) added to the selling price or absorbed therein and (B) paid to the taxing authority;
- (9) tips and gratuities;
- (10) Gross Sales earned through an Affiliated Brand franchise operated at the Franchised Business premises, so long as such Gross Sales constitute gross sales (or equivalent) subject to a royalty fee and other fees under such Affiliated Brand’s franchise agreement; and
- (11) rent or other consideration paid by an affiliated brand franchise for occupying the Class 101 franchised business’ premises. A purchase returned to the Franchised Business may not be deducted from Gross Sales unless the purchase was previously included in Gross Sales.