What is excluded from the "Gross Revenue" calculation for Beauty Bungalows?

According to Beauty Bungalows' 2025 Franchise Disclosure Document, "Gross Revenue" is defined as all amounts collected from suite rental income. However, the calculation of Gross Revenue specifically excludes any revenue collected in the form of taxes that are collected and then paid to applicable government agencies. This definition applies to the financial performance representations for Company-Owned Outlets #1, #2, and #3.

For a prospective Beauty Bungalows franchisee, this means that when evaluating the potential financial performance of a location, you should be aware that the reported Gross Revenue figures do not include taxes collected on behalf of government agencies. This exclusion provides a clearer picture of the actual revenue generated from suite rentals, which is the core business activity.

It is important for potential franchisees to understand exactly how Gross Revenue is calculated, as it forms the basis for many other financial metrics, such as royalty fees and EBITDA. By excluding taxes, Beauty Bungalows aims to provide a more accurate representation of the revenue that is directly attributable to the operation of the business. Franchisees should ensure they understand this definition and how it impacts their financial projections and reporting.