What is the definition of 'Gross Revenue' for an All States M.E.D. franchise?

According to All States M.E.D.'s 2024 Franchise Disclosure Document, Gross Revenue is defined as the total revenue derived from the sale of goods or services, less sales tax, discounts, allowances, and returns. This is a standard definition used in many franchise systems. Understanding this definition is crucial because royalties and local advertising fees are calculated as a percentage of Gross Revenue.

For example, the financial performance representation for the Miami Lakes, FL location in 2022 shows Gross Revenue of $832,521. From this amount, adjustments are made for Royalties (8% of Gross Revenues, or $66,602) and Local Advertising (the greater of $12,000 or 2% of Gross Revenues, which in this case is $16,650). These deductions result in what All States M.E.D. terms 'Adjusted Gross Revenues as if a Franchised Outlet'.

It is important to note that the Gross Revenue figures presented by All States M.E.D. do not reflect the costs of sales, operating expenses, or other costs that a franchisee will incur. Prospective franchisees should conduct their own independent investigation to determine these costs and expenses. The FDD also states that financial performance can vary and there is no guarantee that a franchisee will earn as much as the example provided.