Gross sales, also known as gross revenue, represent the total income generated by a franchise location before deducting returns, discounts, allowances, or operating expenses. This figure is critical in franchising because it is often the basis for calculating royalty fees, marketing contributions, and performance benchmarks. It is usually tracked and reported on a regular basis to the franchisor as part of operational compliance. Accurate reporting of gross sales ensures transparency and proper fee calculation within the franchise system.