What is excluded from the definition of 'Gross Revenues' for a Degree Wellness franchise?

According to Degree Wellness's 2025 Franchise Disclosure Document, 'Gross Revenues' are defined as the total income from the studio's operations. This includes all revenue and receipts derived from the operation of the Studio, including all amounts received at or away from the site of the Studio or through the business the Studio conducts (such as fees for Studio Services, fees for the sale of any other services, gift certificate sales, and revenue derived from products sales, whether paid in cash or by check, credit card, or debit card, or other credit transactions).

However, the definition of 'Gross Revenues' for a Degree Wellness franchise specifically excludes sales taxes collected from patients and remitted to the appropriate taxing authority. It also excludes any patient refunds and credits the Studio actually makes.

This definition is important because the Management Fee that the Licensed Provider pays to the Management Company is calculated based on these Gross Revenues. Franchisees should understand precisely what revenue is subject to the Management Fee to accurately forecast their expenses and profitability. Excluding sales taxes and actual refunds from the gross revenue calculation ensures that franchisees are not paying a percentage of money that simply passes through the business.