How does the Canine Dimensions FEES agreement define gross sales?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
5.4 Definition of Gross Sales
"Gross Sales" means all revenue from the performance of services in association with the Franchised Business, whether for cash or credit and regardless of collection in the case of cash and regardless of collection in the case of credit, and income of every kind and nature related to the Franchised Business. Gross Sales does not include any sales taxes or other taxes collected from clients by Franchisee for transmittal to the appropriate taxing authority. Gross Sales will not include any cash refunds given to, or coupons used by, Franchisee's clients, so long as Franchisor approved of any such coupons prior to their issuance or use by Franchisee.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, gross sales are defined as all revenue from services related to the franchised business, whether in cash or credit, regardless of whether Canine Dimensions actually collects the revenue. This includes income of every kind related to the business.
However, the definition of gross sales for Canine Dimensions specifically excludes sales taxes or other taxes that the franchisee collects from clients and then passes on to the appropriate taxing authority. Additionally, gross sales do not include cash refunds given to clients or coupons used by clients, provided that Canine Dimensions approved these coupons before their use.
This definition is important because Canine Dimensions calculates royalty fees based on a percentage of gross sales. Franchisees should be aware of what constitutes gross sales to accurately report their revenue and avoid potential disputes or penalties. Understanding these inclusions and exclusions ensures accurate financial reporting and compliance with the franchise agreement.