What is included in the definition of 'Gross Revenue' for a Beauty Bungalows franchise?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
(2) "Gross Revenue" means the total of all receipts derived from gross rental receipts and other revenue, whether the receipts are evidenced by cash, credit, checks, services, property, or other means of exchange.
Gross Revenue excludes only sales tax receipts that you must by law collect from customers and that you actually pay to the government, promotional or discount coupons to the extent that Franchisee realizes no revenue, and employee receipt of services, if free, or any portion not paid for by an employee.
On a monthly basis, we will calculate the Gross Revenue generated from the operation of your Beauty Bungalows Franchise from reports generated by the software programs we require you to use.
You must authorize us to make electronic funds transfer debits from your bank account for payment of the Royalty Fee and any other fees you owe to us.
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, Gross Revenue is a critical figure, as it is used to calculate royalty fees, brand fund contributions, local area marketing requirements, and potential marketing cooperative fees. Gross Revenue is defined as the total of all receipts derived from gross rental receipts and other revenue. This includes all forms of payment, whether in cash, credit, checks, services, property, or other means of exchange. This broad definition ensures that all income streams are included when calculating the fees owed to Beauty Bungalows.
However, the definition of Gross Revenue for a Beauty Bungalows franchise does have some specific exclusions. These exclusions include sales tax receipts that the franchisee is legally obligated to collect from customers and then pays to the government. Also excluded are promotional or discount coupons, but only to the extent that the franchisee does not realize any revenue from them. Finally, employee receipt of services, if provided free or any portion not paid for by an employee, is also excluded from Gross Revenue.
Beauty Bungalows franchisees should understand that the franchisor will calculate Gross Revenue monthly using reports generated by the software programs that Beauty Bungalows requires the franchisee to use. Furthermore, franchisees must authorize Beauty Bungalows to make electronic funds transfer debits from their bank account for the payment of the Royalty Fee and any other fees owed. This reliance on mandatory software and electronic fund transfers highlights the importance of accurate record-keeping and careful financial management for Beauty Bungalows franchisees.