For Beem Light Sauna, what is included in the definition of 'Gross Sales'?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
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- "Gross Sales" means all revenue that you receive or otherwise derive from operating the Studio, whether from cash, check, credit or debit card, gift card or gift certificate, or other credit transactions, and regardless of collection or when you actually provide the products or services in exchange for the revenue. If you receive any proceeds from any business interruption insurance applicable to loss of revenue at the Studio, there shall be added to Gross Sales an amount equal to the imputed Gross Sales that the insurer used to calculate those proceeds. Gross Sales includes promotional allowances or rebates paid to you in connection with your purchase of products or supplies or your referral of customers. Gross
- Sales does not include (i) any bona fide returns and credits that are actually provided to customers and (ii) any sales or other taxes that you collect from customers and pay directly to the appropriate taxing authority. You may not deduct payment provider fees (i.e., bank or credit card company fees and gift card vendor fees) from your Gross Sales calculation.
Source: Item 6 — OTHER FEES (FDD pages 20–26)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, "Gross Sales" is defined as all revenue a franchisee receives from operating their studio. This includes revenue from various transaction methods such as cash, checks, credit or debit cards, gift cards or certificates, and other credit transactions, regardless of when the products or services are provided or when the revenue is collected.
Gross Sales also includes any proceeds from business interruption insurance related to revenue loss at the studio. The amount added to Gross Sales will be equal to the imputed Gross Sales that the insurer used to calculate the insurance proceeds. Additionally, promotional allowances or rebates paid to the franchisee in connection with their purchase of products or supplies, or for customer referrals, are included in Gross Sales.
However, Gross Sales does not include bona fide returns and credits actually provided to customers, nor does it include sales or other taxes that the franchisee collects from customers and pays directly to the appropriate taxing authority. It is important to note that payment provider fees, such as bank or credit card company fees and gift card vendor fees, cannot be deducted from the Gross Sales calculation. This definition of Gross Sales is important because Beem Light Sauna uses it to calculate royalty fees and brand fund fees.