What is included in the definition of 'Gross Sales' for a Best In Class Education Center franchise?

According to the 2025 Best In Class Education Center Franchise Disclosure Document, 'Gross Sales' is defined as the total gross sums collected from all goods and services sold, including amounts that third-party marketing agencies, such as Groupon, receive from customers and retain for marketing goods or services. It also includes any other income related to the Best In Class Education Center, such as advertising revenues, sponsorship fees, and business interruption insurance proceeds.

However, the definition of 'Gross Sales' for a Best In Class Education Center franchise specifically excludes certain items. These exclusions include sales or use taxes, amounts refunded to customers, Affiliate Program Sales, and Special Program Sales. Therefore, these categories of income are not included when calculating the total 'Gross Sales' figure for the franchise.

Understanding what constitutes 'Gross Sales' is crucial for a prospective Best In Class Education Center franchisee because many fees payable to the franchisor are calculated as a percentage of Gross Sales. Accurately tracking and reporting Gross Sales is essential for compliance with the Franchise Agreement and for determining the profitability of the franchise. Franchisees should pay close attention to the inclusions and exclusions in the definition to ensure accurate reporting and avoid potential disputes with Best In Class Education Center.