For All Dogs Unleashed franchises, what is excluded from 'Total Gross Revenue'?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
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- "Total Gross Revenue" means all gross revenues generated by the Commercial Facilities attributed to the sale of all goods and services less sales tax, discounts, allowances, and returns during the Reporting Period, as reported to us by the Commercial Facilities. Total Gross Revenues also includes reimbursements paid to the Commercial Facilities during the Reporting Period for veterinary services provided to the Commercial Facility. Veterinary services are paid by the Commercial Facilities directly to the veterinary practice and then billed to the customer for reimbursement.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 38–45)
What This Means (2025 FDD)
According to All Dogs Unleashed's 2025 Franchise Disclosure Document, 'Total Gross Revenue' for commercial facilities includes all gross revenues generated from the sale of goods and services. However, it excludes sales tax, discounts, allowances, and returns during the reporting period. Additionally, 'Total Gross Revenue' includes reimbursements paid to the commercial facilities for veterinary services, where the facility pays the veterinary practice directly and then bills the customer for reimbursement.
For a prospective All Dogs Unleashed franchisee, understanding this definition is crucial for accurately assessing their financial performance. It clarifies that while all revenue from dog training, boarding, daycare, and grooming services counts toward gross revenue, certain deductions like sales tax and discounts are not included. This ensures a consistent method for calculating revenue across all franchise locations.
The inclusion of veterinary service reimbursements in 'Total Gross Revenue' is also noteworthy. This means that even though the All Dogs Unleashed franchisee is simply passing through the cost of veterinary services to the customer, these reimbursements are still counted as part of the overall revenue. This could potentially inflate the 'Total Gross Revenue' figure, so franchisees should be aware of this when comparing their performance to other locations or industry benchmarks.
It is important for potential franchisees to carefully review this definition and understand how it impacts their financial reporting and royalty obligations to All Dogs Unleashed. They should also seek clarification from the franchisor on any specific scenarios or situations that may not be explicitly covered in the definition.