What is included in the definition of 'Gross Sales' for an Aira Fitness franchise?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Gross Sales. "Gross Sales" as used herein means the total gross sales from the provision of all products and services sold or performed by or for you or the Aira Fitness Business in, at, from or away from the Aira Fitness Business, or through or by means of the Aira Fitness Business' business, whether from cash, check, credit card, debit card, barter or exchange, or other credit transactions, and irrespective of the collection thereof, and including, without limitation, the following: (a) membership fees, including, without limitation, initiation fees, enrollment fees, processing fees, paid-in-full dues, renewal fees, corporate/third party payor fees, monthly dues and any fees or revenue generated and derived during any presales; (b) fees and charges for optional or ancillary services; and (c) revenue derived from merchandise and product sales.
Notwithstanding the foregoing, the following amounts will be deducted from "Gross Sales": (i) sales taxes, use taxes, and other similar taxes added to the sales price and collected from the customer and paid to the appropriate taxing authority; and (ii) any bona fide refunds and credits that are actually provided to customers.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, "Gross Sales" encompasses the total revenue from all products and services provided by the franchisee's Aira Fitness Business. This includes sales made in any form, such as cash, checks, credit cards, debit cards, barter, or other credit transactions, regardless of whether the payment has been collected.
Specifically, the definition includes membership fees like initiation, enrollment, processing, paid-in-full dues, renewal, corporate/third party payor fees, monthly dues, and any revenue from presales. It also covers fees and charges for optional or additional services, as well as revenue from merchandise and product sales.
However, certain amounts are deducted from Gross Sales before calculating royalties and other fees. These deductions include sales taxes, use taxes, and other similar taxes that are added to the sales price, collected from customers, and paid to the appropriate taxing authority. Additionally, any legitimate refunds and credits actually provided to customers are also subtracted from the gross sales figure.