What are the exclusions from 'Affiliate Program Sales' for a Best In Class Education Center franchise?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
Affiliate Program Sales excludes: (a) sales or use taxes you pay to a Governmental Authority; (b) revenue you collect and subsequently refund to a customer in a bona fide refund transaction; (c) Gross Sales; and (d) Special Program Sales.
Source: Item 23 — RECEIPT (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Best In Class Education Center FDD, 'Affiliate Program Sales' are the total gross sums collected from all approved Affiliate Programs conducted at the franchisee's center. However, certain items are excluded from this calculation.
The following are excluded from Affiliate Program Sales: (a) sales or use taxes the franchisee pays to a Governmental Authority; (b) revenue the franchisee collects and subsequently refunds to a customer in a bona fide refund transaction; (c) Gross Sales; and (d) Special Program Sales.
For a prospective Best In Class Education Center franchisee, this means that when calculating the revenue subject to franchise fees or other financial obligations, they do not need to include sales taxes, legitimate refunds, revenue categorized as Gross Sales, or revenue from Special Programs. Understanding these exclusions is important for accurate financial reporting and avoiding overpayment of fees to Best In Class Education Center.