Where can I find the definition of 'Gross Revenue' within the Bath Tune Up franchise agreement?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| Page | ||
|---|---|---|
| 1. | DEFINITIONS | |
| 1.1. | Affiliate | |
| 1.2. | Approved Vendors | |
| 1.3. | Bath Improvements | 1 |
| 1.4. | Company-Owned Operation | 2 |
| 1.5. | Control | 2 |
| 1.6. | Franchised Business | 2 |
| 1.7. | Gray Area | 2 |
| 1.8. | Gross Revenue | 2 |
| 1.9. | Key Account | 2 |
| 1.10. | Manager | 3 |
| 1.11. | Manuals | 3 |
| 1.12. | Marks | 3 |
| 1.13. | Monthly Operating Report | 3 |
| 1.14. | Partnership Vendors | 3 |
| 1.15. | Products | 3 |
| 1.16. | Showroom | 3 |
| 1.17. | System | 3 |
| 1.18. | Territory | 4 |
| 1.19. | Transfer | 4 |
| 2. | THE FRANCHISED BUSINESS | 4 |
| 2.1. | Grant of Franchise | |
| 2.2. | Limited Exclusivity | 4 |
| 2.3. | Reserved Rights | 5 |
| 2.4. | Area and Scope of Operation | 6 |
| 3. | LOCATION OF BUSINESS Principal Place of Business | |
| 3.1. | ||
| 3.2. | Office/Warehouse | 6 |
| 3.3. | Showroom | 6 |
| 4. | PAYMENTS BY FRANCHISEE | 7 |
| 4 1 |
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to the 2025 Bath Tune Up Franchise Disclosure Document, the table of contents in Item 22, "Contracts", lists the definitions used in the franchise agreement. Specifically, section 1.8, "Gross Revenue" is defined on page 2 of the franchise agreement.
Locating this definition is crucial for Bath Tune Up franchisees because "Gross Revenue" is used to calculate both the Continuing Royalty fee and the National Advertising Fee. Understanding what constitutes "Gross Revenue" ensures accurate financial reporting and payment of fees to the franchisor.
It is important for prospective franchisees to review this definition carefully within the franchise agreement to fully understand their financial obligations to Bath Tune Up.