"In drafting percentage rent provisions, it is very important that the parties carefully consider the types of transactions that will be included in the definition of gross sales and draft the percentage rent provision to accurately reflect the parties' expectations.
This is particularly important in the event of a dispute between the parties as to what transactions are included in gross sales because the courts have not provided a definitive meaning of 'gross sales' within the context of retail leases.
Instead, in keeping with general contract principles, the courts have looked at the language of a particular agreement to attempt to define the term in a manner reflecting the parties' intent."
Read more in Corporate Counsel Review's Achieving a Sensible Definition of 'Gross Sales'
"Gross Sales" includes the total revenues and receipts from the sale of all products, services and merchandise sold in your Restaurant whether under any of the Trademarks or otherwise, including any cover charges or fees, vending or similar activities in your Restaurant or on its premises as well as all license and use fees. Gross Sales excludes sales taxes.