What do gross sales rebates consist of for Bath Tune Up?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
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During the years ended December 31, 2024 and 2023, the Company recorded $1,661,384 and $1,596,423 of NAF revenue in Continuing franchise fees on the Statements of Operations
Gross sales rebates – consists of rebates received based upon franchisee purchases with certain vendors that the Company has negotiated. The Company's performance obligation for vendor rebates is satisfied upon the sale of a vendor's product to the Company's franchisees. The vendor rebate revenue is recorded in the period the franchisee's purchase was made based upon vendor sales information.
Product and other sales - Product sales – consists of product inventory and service sales to franchisees. The product sales relate primarily to the Company coordinating the franchisees purchase of certain products from specific vendors.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 51–52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, gross sales rebates consist of rebates received based upon franchisee purchases with certain vendors that the company has negotiated. Bath Tune Up's obligation for vendor rebates is satisfied upon the sale of a vendor's product to the company's franchisees.
For a Bath Tune Up franchisee, this means that a portion of their purchases from specific, pre-approved vendors will result in rebates. These rebates are factored into the company's revenue calculations. The vendor rebate revenue is recorded in the period the franchisee's purchase was made based upon vendor sales information.
During 2024 and 2023, three and four product suppliers generated $1,191,233, or 57%, and $1,402,487, or 65%, respectively, of the Company's Gross sales rebates on the Statements of Operations. As of December 31, 2024 and 2023, the Company has $13,024, or 10%, and $25,854, or 13%, respectively, of Rebates receivable related to these same suppliers on the Balance Sheets.