What revenue is excluded from 'Gross Sales' for a Beem Light Sauna franchise?
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" for a studio encompasses all revenue received from its operation, irrespective of the payment method (cash, credit, gift card, etc.) or when the services are provided. This includes promotional allowances or rebates received for purchasing products or referring customers.
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 that are collected from customers and paid directly to the appropriate taxing authority.
For a prospective Beem Light Sauna franchisee, this means that when calculating Gross Sales for royalty or other financial reporting purposes, they should not include the value of returns/credits issued to customers or any sales taxes collected and remitted to the government. Understanding this distinction is crucial for accurate financial reporting and avoiding potential discrepancies with the franchisor.