For Beem Light Sauna, are promotional allowances included in Gross Sales?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Gross Sales" means all revenue that is received or otherwise derived from operating a Studio, whether from cash, check, credit or debit card, gift card or gift certificate, or other credit transactions, and regardless of collection or when the Studio operator actually provides the products or services in exchange for the revenue. Gross Sales includes promotional allowances or rebates paid to the Studio operator 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 are collected from customers and pay directly to the appropriate taxing authority.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 62–66)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, gross sales include promotional allowances. The FDD defines "Gross Sales" as all revenue received from operating a studio, derived from various transaction methods such as cash, credit card, and gift certificates. This definition explicitly includes promotional allowances or rebates paid to the studio operator for purchasing products/supplies or customer referrals.
For a prospective Beem Light Sauna franchisee, this means that any promotional allowances or rebates they receive will be counted as part of their gross sales. This is important for calculating royalties, as royalties are typically based on a percentage of gross sales. Franchisees should keep detailed records of all revenue streams, including promotional allowances, to ensure accurate reporting.
However, the definition of Gross Sales does exclude certain items. Specifically, bona fide returns and credits actually provided to customers are not included in Gross Sales. Additionally, sales or other taxes collected from customers and paid directly to the appropriate taxing authority are also excluded from Gross Sales. Franchisees should be aware of these exclusions to accurately calculate and report their gross sales to Beem Light Sauna.