Are revenues for Crawlspace Medic calculated before or after sales tax?

According to Crawlspace Medic's 2024 Franchise Disclosure Document, the revenues presented in Item 19 are calculated as gross sales less sales tax. This means that the revenue figures provided are net of sales tax, reflecting the actual income Crawlspace Medic franchisees retain after remitting sales taxes to the appropriate authorities.

For a prospective Crawlspace Medic franchisee, this is a crucial distinction. The financial performance representations, such as average and median revenues, already account for the deduction of sales tax. This provides a more accurate picture of the income available to cover operating expenses, royalties, and owner's draw. Franchisees do not need to estimate or subtract sales tax from the revenue figures to understand their potential earnings.

It is important to note that these revenue calculations do not include other expenses such as royalties, brand fund payments, or technology fees, which franchisees will need to factor into their financial planning. Additionally, the FDD states that Crawlspace Medic affiliates operate without territorial restrictions, and a franchisee's results may vary depending on the size and characteristics of their territory. Therefore, while the revenue figures are net of sales tax, franchisees should conduct thorough due diligence to understand all potential costs and revenue variations in their specific market.