What items are excluded from 'Gross Sales' calculations for a Care Plus Medical Ucc franchise?

According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, 'Gross Sales' for the purpose of calculating royalty fees and marketing contributions, is defined as the total dollar amount of all sales generated through the Business for a given period, including payment for any services or products sold by the Franchisee, whether for cash or credit.

However, the following are specifically excluded from the 'Gross Sales' calculation: bona fide refunds to customers, sales taxes collected by the Franchisee, sales of used equipment not in the ordinary course of business, and sales of prepaid cards or similar products. It is important to note that while the sale of prepaid cards is excluded, the redemption of any such card or product will be included in Gross Sales.

This definition is important for prospective franchisees as it directly impacts the calculation of royalty fees (as described in 4.2) and marketing fund contributions (as described in 4.3), which are a percentage of Gross Sales. Franchisees should ensure they accurately track and report their sales, while also properly accounting for the exclusions to avoid overpayment of fees. Understanding what constitutes 'Gross Sales' is crucial for financial planning and compliance with the franchise agreement.