Does the definition of 'Practice Revenues' for a C3 Wellness Spa include revenue from the sale of pharmaceuticals?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
- (ee) "Practice Revenue(s)" means all amounts received by Practice from all sources including all contractual payments, gross revenue, capitation payments and fees and co-payments, including ancillary health care service revenue, and any other revenues of a nature that have historically been recorded by Practice for the delivery of medical and other services to patients, including Professional Services, medical ancillary services, pharmaceuticals and other items and supplies sold to patients, and other fees or income generated by Practice, Practice Professionals or Practice Physicians (acting within the scope of their duties to Practice) for services rendered by Practice.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, Practice Revenues do include revenue from the sale of pharmaceuticals. The FDD defines Practice Revenues as all income received by the Practice from various sources.
Specifically, Practice Revenues include all contractual payments, gross revenue, capitation payments, and fees and co-payments. It also encompasses ancillary healthcare service revenue and any other revenues historically recorded by the Practice for delivering medical and other services to patients.
This definition explicitly includes revenue from Professional Services, medical ancillary services, pharmaceuticals, and other items and supplies sold to patients. It also covers other fees or income generated by the Practice, Practice Professionals, or Practice Physicians for services rendered within their duties to the Practice. This comprehensive definition means that franchisees must include all revenue streams, including pharmaceutical sales, when calculating Practice Revenues for royalty and other financial reporting purposes.