What is included in the definition of 'Gross Sales' for a Body20 studio?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
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- "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 64–69)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, "Gross Sales" for a Body20 studio encompasses all revenue derived from its operation. This includes revenue received through various payment methods such as cash, checks, credit or debit cards, gift cards or certificates, and other credit transactions. The definition applies regardless of when the studio operator actually provides the products or services in exchange for the revenue or when the payment is collected.
Notably, the definition of Gross Sales also incorporates promotional allowances or rebates that the Body20 studio operator receives in connection with purchasing products or supplies, or for customer referrals. This means that any financial incentives earned through these activities are included in the calculation of Gross Sales.
However, the definition of Gross Sales does have some exclusions. Specifically, Gross Sales does not include any bona fide returns and credits that are actually provided to customers. Additionally, any sales or other taxes that the studio collects from customers and remits directly to the appropriate taxing authority are also excluded from the Gross Sales calculation. This distinction is important for franchisees to understand, as it clarifies what revenue is subject to franchise fees and other financial obligations to Body20.