How does Beauty Bungalows calculate the Gross Revenue generated from the operation of my franchise?

According to Beauty Bungalows' 2025 Franchise Disclosure Document, Gross Revenue is the total of all income from gross rental receipts and other revenue, whether received in cash, credit, checks, services, property, or other forms of exchange. On a monthly basis, Beauty Bungalows calculates Gross Revenue from reports generated by the software programs that franchisees are required to use. This figure is critical because several fees, such as the Royalty Fee, Brand Fund Contribution, and Local Area Marketing Requirement, are calculated as a percentage of Gross Revenue.

However, not all income is included in Gross Revenue. Beauty Bungalows specifically excludes sales tax receipts that franchisees collect from customers and pay to the government. Also excluded are promotional or discount coupons, as long as the franchisee does not realize any revenue from them. Finally, employee receipt of services, if free, or any portion not paid for by an employee, is also excluded from Gross Revenue.

Understanding exactly how Gross Revenue is defined is crucial for franchisees, as it directly impacts the fees they owe to Beauty Bungalows. Franchisees should ensure they are familiar with the required software programs and how they generate the reports used to calculate Gross Revenue. It is also important to keep accurate records of all sales, discounts, and tax collections to ensure accurate reporting and avoid potential disputes with Beauty Bungalows.