What is included in the calculation of 'Gross Sales' for a Care Plus Medical Ucc franchise?

According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, 'Gross Sales' is defined as the total revenue generated by the franchise. This includes all payments received for services or products sold, whether the payment is in cash or credit. This figure is used to calculate royalty fees and marketing contributions.

However, the calculation of Gross Sales for a Care Plus Medical Ucc franchise specifically excludes certain items. These exclusions are (i) bona fide refunds to customers, (ii) sales taxes collected by Franchisee, (iii) sales of used equipment not in the ordinary course of business, or (iv) sales of prepaid cards or similar products (but the redemption of any such card or product will be included in Gross Sales).

For a prospective Care Plus Medical Ucc franchisee, understanding this definition is crucial because the royalty fee (6% of Gross Sales) and the marketing fund contribution (1% of Gross Sales) are directly based on this figure. Accurate record-keeping and reporting of Gross Sales are essential for compliance with the franchise agreement and to avoid potential audits or penalties from Care Plus Medical Ucc. Franchisees should pay close attention to what is included and excluded from Gross Sales to ensure accurate financial reporting.