Does the 'Gross Revenue' for Beauty Bungalows include taxes collected and paid to government agencies?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Gross Revenue "Gross Revenue" means all amounts collected from suite rental income generated at Company-Owned Outlet #1 during each Measurement Period.
Gross Revenue does not include any revenue collected in the form of taxes collected and then paid to applicable government agencies.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 40–45)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, the reported 'Gross Revenue' specifically excludes taxes collected and then paid to applicable government agencies. This definition applies to the financial performance representations for Company-Owned Outlets #1, #2, and #3. This means the revenue figures presented are net of any sales taxes or similar taxes that Beauty Bungalows collects on behalf of the government.
For a prospective Beauty Bungalows franchisee, this is a positive clarification. It ensures that the revenue figures presented in Item 19 more accurately reflect the income generated directly from suite rentals, without including pass-through tax amounts. This allows franchisees to better understand the actual revenue potential of a Beauty Bungalows location.
It is important for potential franchisees to understand exactly what is included and excluded from gross revenue. Franchisees should review the complete Item 19 and its notes to fully understand the financial performance representations. They should also consult with a financial advisor to assess the implications for their own business planning and financial projections.