What is included in the "Gross Revenue" calculation for Beauty Bungalows?
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, "Gross Revenue" is defined as the total income derived from suite rentals at the company-owned outlets during a specific measurement period. Specifically, this includes all amounts collected from the rental of individual suites within the Beauty Bungalows location.
However, the calculation of Gross Revenue for Beauty Bungalows explicitly excludes any revenue that is collected in the form of taxes. This means that if the company-owned outlet collects sales tax or any other form of tax from its suite renters, and then remits those taxes to the appropriate government agencies, those amounts are not included in the Gross Revenue figure. The Gross Revenue figures are used to calculate other financial metrics such as EBITDA and EBITDA margin.
Prospective franchisees should understand this definition of Gross Revenue, as it is a key component in assessing the financial performance of Beauty Bungalows locations. It is important to focus on revenue directly generated from the core business activity (suite rentals) when evaluating the potential profitability of a franchise. Understanding what is included and excluded from this figure allows for a more accurate comparison of financial performance across different locations and over different time periods.