What revenue is excluded from the definition of 'Gross Sales' for a Body20 studio?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
ing Period for products or services, including, without limitation, payments for Sessions provided after the conclusion of the Pre-Opening Period.
NOTES TO ITEM 19:
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- Some Studios have sold or earned this amount. Your individual results may differ. There is no assurance that you'll sell or earn as much.
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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 op
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 includes all revenue received from operating the studio, regardless of the form of payment or when the services are provided. This includes revenue from cash, checks, credit/debit cards, gift cards, and promotional allowances or rebates.
However, the definition of Gross Sales does have specific exclusions. It does not include (i) any bona fide returns and credits that are actually provided to customers, meaning refunds or discounts given to customers are subtracted from the total revenue.
Additionally, Gross Sales excludes (ii) any sales or other taxes that are collected from customers and paid directly to the appropriate taxing authority. This means that the sales tax or other taxes a Body20 franchisee collects on behalf of the government are not considered part of the studio's gross sales. This is a common practice in franchising, as franchisees act as collection agents for these taxes, which are then remitted to the government.