What is excluded from Body20's definition of 'Gross Sales'?

According to Body20's 2025 Franchise Disclosure Document, the definition of Gross Sales excludes specific items. Gross Sales encompasses all revenue from operating a Body20 studio, including cash, checks, credit/debit cards, gift cards, and other credit transactions, irrespective of when the services are provided or when the revenue is collected. It also includes promotional allowances or rebates paid to the studio operator for purchasing products/supplies or customer referrals.

However, Body20's definition of Gross Sales specifically excludes (i) any bona fide returns and credits actually provided to customers and (ii) any sales or other taxes collected from customers and paid directly to the appropriate taxing authority. This means that when calculating the total revenue of a Body20 franchise for financial reporting or royalty purposes, franchisees do not need to include the value of returns, credits issued to customers, or sales taxes that are remitted to the government.

For a prospective Body20 franchisee, understanding this definition is crucial for accurate financial reporting and royalty calculations. By excluding these items, Body20 aims to provide a clearer picture of the actual revenue generated from the core services and products offered at the studio, which can help in assessing the financial performance and profitability of the franchise.