What is included in the definition of 'Gross Revenues' for a Creative World School?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
As used in this Agreement, the term "Gross Revenue" means all revenues and/or income generated from the provision of any and all services, the sales of any and all products, and performance of any and all other activities connected to or arising from the Franchised Business School at or away from the site, including, but not limited to, all enrollment fees, tuition fees, charges or all amounts you receive at or away from the Site from any activities or services whatsoever including any that are in any way associated with the Marks, and whether from cash, check, barter, credit or debit card or credit transactions, but excluding all federal, state or municipal sales, use or service taxes collected from customers and actually paid to the appropriate taxing authority.
Gross Revenues also
includes (a) condemnation awards received directly or indirectly for loss of revenue or business, whether generated by, or paid to, you or your affiliates, and (b) the fair market value of any goods or services received, directly or indirectly, by you if consideration other than cash is received. You will notify us of any noncash consideration Franchisee receives.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School Franchise Disclosure Document, Gross Revenue is defined as all revenues and/or income generated from any services or sales related to the Franchised Business School. This includes all enrollment fees, tuition fees, charges, or any amounts received from activities or services connected to the school, whether on-site or off-site. These revenues can come from various forms of payment, including cash, checks, barter, credit or debit cards, and credit transactions. However, Gross Revenues do not include federal, state, or municipal sales, use, or service taxes collected from customers that are actually paid to the appropriate taxing authority.
Gross Revenues also include condemnation awards received for loss of revenue or business, whether paid directly to the franchisee or their affiliates. Additionally, the fair market value of any goods or services received in lieu of cash is included in Gross Revenues. The franchisee is required to notify Creative World School of any noncash consideration they receive.
Understanding the components of Gross Revenue is crucial for Creative World School franchisees because it directly impacts the calculation of royalties and other fees owed to the franchisor. Franchisees must accurately report all forms of revenue, including non-cash considerations, to ensure compliance with the franchise agreement and avoid potential discrepancies or penalties. Knowing what is included and excluded from Gross Revenues helps franchisees manage their financial reporting and maintain transparency with the franchisor.