What is included in '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 dollar amount of all sales generated through the Business for a given period. This includes payments for any services or products sold by the franchisee, whether the payment is made in cash or via credit. This definition is important because several fees that Care Plus Medical Ucc franchisees pay to the franchisor are calculated as a percentage of Gross Sales.

However, the definition of Gross Sales also specifies certain exclusions. Gross Sales does not include (i) bona fide refunds to customers, (ii) sales taxes collected by the franchisee, (iii) sales of used equipment not in the ordinary course of business, or (iv) sales of prepaid cards or similar products. However, the redemption of any such card or product will be included in Gross Sales.

It is important for prospective franchisees to understand exactly how 'Gross Sales' is defined, as this figure is used to calculate royalty fees and marketing fund contributions. Underreporting Gross Sales would be a violation of the franchise agreement and could lead to penalties or even termination of the franchise agreement. Care Plus Medical UCC also has the right to remotely access the franchisee's point-of-sale system to calculate Gross Sales.