What is excluded from the definition of 'Gross Revenues' for a Boulder Designs franchise?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 4. "Gross Revenues" means the aggregate of all income and monthly fees Franchisee receives from customers for the purchase or provision of any goods or services, including enrollment fees, or any other person or business entity for the Franchised Business in connection with the Franchised Business (whether or not in accordance with the terms of the Franchise Agreement) and whether for check, cash, credit or otherwise, from the sale of products and services (including service charges in lieu of gratuity) regardless of the dollar amount Franchisee sells each product or service for, including, without limitation, all proceeds from any business interruption insurance and any revenue generated from National Accounts, but excluding (a) all insurance payments, check, cash, credit or debit card refunds made in good faith provided, prior to granting the refunds, the revenue related to the refunds was included in Gross Revenues, (b) any sales and equivalent taxes that Franchisee collects for or on behalf of and pay to any governmental taxing authority, and (c) any rebate Franchisee receives from a manufacturer or supplier.
Source: Item 6 — OTHER FEES (FDD pages 11–16)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, "Gross Revenues" is comprehensively defined as the aggregate of all income and monthly fees a franchisee receives from customers for goods or services related to the franchised business. This includes income from various sources such as enrollment fees, payments in the form of check, cash, credit, or other means, and revenues from National Accounts and business interruption insurance.
However, the definition of "Gross Revenues" for a Boulder Designs franchise specifically excludes certain items. These exclusions include (a) all insurance payments, check, cash, credit or debit card refunds made in good faith, provided the revenue related to the refunds was initially included in Gross Revenues, (b) any sales and equivalent taxes that the franchisee collects for or on behalf of and pays to any governmental taxing authority, and (c) any rebate the franchisee receives from a manufacturer or supplier.
These exclusions are important for prospective franchisees to understand because the Royalty Fee and National Accounts Fee are calculated as a percentage of Gross Revenues. By excluding these items from the definition of Gross Revenues, Boulder Designs ensures that franchisees are not paying royalties or other fees on refunded amounts, sales taxes, or manufacturer rebates, which would not accurately reflect the franchisee's actual income from sales.