What constitutes 'Gross Revenue' for the Beauty Bungalows Company-Owned Outlet #1?

According to Beauty Bungalows' 2025 Franchise Disclosure Document, Gross Revenue for Company-Owned Outlet #1 is defined as all income derived from suite rentals. Specifically, it includes all amounts collected from suite rental income during each measurement period. The document explicitly excludes any revenue collected in the form of taxes that are collected and then paid to applicable government agencies from the gross revenue calculation.

This definition is important for prospective franchisees because it clarifies what income is used to calculate key financial metrics such as EBITDA and EBITDA margin. Understanding what constitutes Gross Revenue allows franchisees to accurately assess the financial performance of the company-owned outlet and to project potential revenue for their own franchise location.

It's worth noting that while the FDD provides a definition of Gross Revenue, it also advises prospective franchisees to conduct their own independent investigation of costs and expenses. This includes consulting with existing or former franchisees to gain a comprehensive understanding of the financial aspects of operating a Beauty Bungalows franchise. The FDD also states that the financial performance representation is historic based upon existing Company-Owned Outlets.