What is included in the definition of 'Gross Sales' for an Advanced Mobile Iv And Amiv franchise?
Advanced_Mobile_Iv_And_Amiv Franchise · 2023 FDDAnswer from 2023 FDD Document
, all fees are imposed by and payable to us. All fees are non-refundable.
Note 1. "Gross Sales" Defined. "Gross Sales" means all receipts generated by the Franchise from any source, including, but not limited to, intravenous or IV vitamin therapies and medication and hydration infusion and memberships, subscriptions, sales, services, products, charges, contracts, and any other type of remuneration and excludes discounts, refunds and sales taxes.
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2023 FDD)
According to Advanced Mobile Iv And Amiv's 2023 Franchise Disclosure Document, "Gross Sales" encompasses all income the franchise generates, irrespective of the source. This includes revenue from intravenous (IV) vitamin therapies, medication and hydration infusions, memberships, subscriptions, sales, services, products, charges, contracts, and any other form of payment. However, it specifically excludes discounts, refunds, and sales taxes.
Furthermore, the definition of Gross Sales for an Advanced Mobile Iv And Amiv franchise includes credit transactions from the date of the transaction, without any deduction for uncollected credit accounts. This means that even if a customer has not yet paid for a service or product, the revenue is still counted towards Gross Sales at the time of the transaction.
This comprehensive definition of Gross Sales is important because several fees payable to Advanced Mobile Iv And Amiv are calculated as a percentage of Gross Sales, including the Royalty Fee (5% of Gross Sales) and the Marketing Fee (up to 1% of monthly Gross Sales, beginning in month 13). Additionally, the document recommends that franchisees spend at least 1% of their annual Gross Sales on local advertising. The Step-In Rights Fee is 15% of Gross Sales. Accurate reporting of Gross Sales is therefore critical for franchisees to ensure correct payment of fees and to avoid potential audits, which can be costly if underreporting exceeds 2%.
Franchisees must provide Advanced Mobile Iv And Amiv with an itemized report of their Gross Sales for the preceding month, following the format designated in the Operations Manual. Royalty and Advertising Fee payments, based on these Gross Sales, are due with the report. Advanced Mobile Iv And Amiv retains the right to audit these reports and related financial records, with the franchisee bearing the costs of the audit if Gross Sales are understated by more than 2% or if reports are not submitted on time.