For Body Brain Center, does the definition of 'Net-of-tax Payment' include sales taxes?

According to Body Brain Center's 2025 Franchise Disclosure Document, the term 'Net-of-tax Payment' is specifically defined in relation to payments received for programs. The definition explicitly excludes all state, local, or county sales taxes from the payment amount. This means that when Body Brain Center calculates referral commissions or other payments based on program revenue, they will only consider the amount received after deducting any applicable sales taxes.

For a prospective Body Brain Center franchisee, this definition is important for understanding how revenue-based fees and commissions are calculated. For example, the royalty fee is 10% of Program Sales. Franchisees should be aware that the 'Net-of-tax Payment' definition ensures that they are not paying fees or commissions on the portion of revenue that is collected for sales taxes and remitted to government entities. This is a standard practice in franchising, as it ensures that franchisees are only assessed fees on the actual revenue retained by the business.

This definition appears within the context of an agreement outlining referral commissions, indicating that Body Brain Center uses this 'Net-of-tax Payment' calculation when determining payments to third parties for customer referrals. While the provided excerpt focuses on referral commissions, the consistent application of this definition across all revenue-based calculations is crucial for financial transparency and accurate reporting within the Body Brain Center franchise system. Franchisees should confirm with Body Brain Center that this definition applies uniformly to all relevant financial calculations.