What receipts are excluded from the 'Gross Revenue' calculation for a Beauty Bungalows franchise?

According to Beauty Bungalows's 2025 Franchise Disclosure Document, "Gross Revenue" is defined as 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. However, certain receipts are excluded from this calculation.

Specifically, Beauty Bungalows excludes sales tax receipts that the franchisee must legally collect from customers and actually remit to the government. This means that franchisees do not pay royalties or other percentage-based fees on sales tax collected on behalf of the government.

Additionally, Beauty Bungalows excludes promotional or discount coupons from gross revenue calculations, but only to the extent that the franchisee realizes no revenue from them. This implies that if a franchisee receives any revenue from the redemption of promotional or discount coupons, that revenue would be included in gross revenue. Finally, employee receipt of services, if free, or any portion not paid for by an employee is excluded from the gross revenue calculation. This means that if employees receive free services or services at a discount, the value of those free or discounted services is not included in the gross revenue calculation, as long as the employee does not pay for any portion of the service.