Define: Cost of Doing Business

How is Cost of Doing Business defined in a legal contract?

• Cost of Doing Business means all expenses incurred during the purchasing, processing, selling and other activities related to the item in question. These include labor costs, rent, interest on borrowed capital, depreciation, cost of selling, equipment maintenance, delivery costs, credit losses, cost of all licenses, taxes, insurance, and advertising. Seen in 3 SEC filings
• Cost of Doing Business means the total operational cost of the establishment for the prior [number]-month period. This includes direct and indirect costs such as product cost, freight charges, labor costs, cost of equipment, rental and maintenance expenses, management fees, depreciation, selling costs, interest expenses, delivery costs, all types of licenses and taxes, insurance, advertising and all administrative expenses. Seen in 2 SEC filings

Please note that the specific number inside the [number]-month period could change in different contracts.

Note: The Genie AI Legal Assistant pulled this data out of the SEC EDGAR Database of 500,000 records from the past 22 years of filings. We regularly update this page as new filings and definitions come in.

Search EDGAR for 'Definitions of cost of doing business' yourself to verify these results. We are always keen to point people to source documents.

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Which definition should you use?

🤔 Our AI Legal Assistant has combined and improved the above descriptions to create market-standard 'Genie definitions' below, with guidance on which documents and which industry to use for each.

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Genie Definition 1

• Cost of Doing Business means all direct and indirect expenses incurred in operational activities, inclusive of labor, rental, licenses, taxes and advertising.

Relevant Contract Types

• Franchise Agreements
• Purchase Agreements
• Service Level Agreements
• Corporate Bylaws

Relevant Circumstances

• Evaluating franchise costs
• Calculating profit margins
• Risk assessment
• Financial reporting

Relevant Sectors

• Retail
• Manufacturing
• Logistics
• Services

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Genie Definition 2

• Cost of Doing Business means the total operational costs incurred over a [number]-month period, considering all types of business-related expenses.

Relevant Contract Types

• Joint Venture Agreements
• Non-disclosure Agreements
• License Agreements
• Partnership Agreements

Relevant Circumstances

• Establishing a joint venture
• Starting a new business
• Evaluating potential partnerships
• Negotiating licensing terms

Relevant Sectors

• Technology
• Finance
• Pharmaceuticals
• Energy

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