What is included in the definition of "Gross Sales" for a Canine Dimensions franchise?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
"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" is defined as all revenue generated from services related to the Franchised Business. This includes revenue received in cash or credit, regardless of whether the payments have actually been collected. The definition also encompasses income of every kind and nature related to the Franchised Business.
However, the definition of "Gross Sales" for a Canine Dimensions franchise specifically excludes certain items. These exclusions include any sales taxes or other taxes that the franchisee collects from clients and then remits to the appropriate taxing authority. Additionally, "Gross Sales" does not include any cash refunds given to clients or coupons used by clients, provided that Canine Dimensions approved these coupons before their issuance or use by the franchisee.
For a prospective Canine Dimensions franchisee, understanding this definition is crucial because it directly impacts the calculation of royalties and other fees owed to the franchisor. By clearly outlining what constitutes "Gross Sales" and what is excluded, Canine Dimensions aims to provide transparency and avoid potential disputes over revenue reporting. Franchisees should pay close attention to the conditions regarding coupons and refunds to ensure compliance with the franchise agreement.