What is excluded from the definition of 'Gross Sales' for a Beem Light Sauna franchise?

According to Beem Light Sauna's 2025 Franchise Disclosure Document, 'Gross Sales' is defined as all revenue received from operating a studio, encompassing cash, checks, credit/debit cards, gift cards/certificates, and other credit transactions, irrespective of when payment is collected or when services/products are provided. Gross Sales also includes promotional allowances or rebates paid to the studio operator for purchasing products/supplies or customer referrals.

However, the definition of Gross Sales for a Beem Light Sauna franchise specifically excludes certain items. These exclusions are (i) any bona fide returns and credits actually provided to customers, and (ii) any sales or other taxes collected from customers that are directly paid to the appropriate taxing authority. Therefore, these amounts are not considered part of the revenue on which royalties or other fees would be calculated.

For a prospective Beem Light Sauna franchisee, understanding this definition is crucial for accurate financial reporting and royalty calculations. Franchisees should ensure their accounting practices properly track and deduct these excluded items from their total revenue to arrive at the correct Gross Sales figure. This ensures compliance with the franchise agreement and avoids overpayment of royalties. It is also important to note that these sales figures do not reflect the costs of sales, operating expenses or other costs or expenses that must be deducted from the Gross Sales figures to obtain your net income or profit.