What is included in 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 derived from the operation of the franchise. This includes all revenue and receipts, whether received at the franchise location or elsewhere, and covers all business activities conducted by the franchise. Specifically, this encompasses fees for services and products, gift certificate sales, and revenue from product sales. These revenues are counted regardless of the payment method, including cash, checks, credit cards, debit cards, barter, exchange, or other credit transactions. The calculation of gross revenues does not allow for any deductions due to inability or failure to collect payments.

However, there are a couple of exceptions to what is included in gross revenues. Degree Wellness franchisees can exclude sales taxes collected from customers that are then paid to the appropriate taxing authority. Additionally, any customer refunds or credits that the franchise actually makes can also be excluded from the gross revenue calculation.

Understanding the definition of gross revenues is crucial for Degree Wellness franchisees because it directly impacts the calculation of fees payable to the franchisor, such as the Continuing Franchise Fee and Fund contributions. Franchisees should maintain accurate records of all transactions and ensure proper reporting of gross revenues to avoid discrepancies and potential penalties, such as the franchisor debiting 120% of the previous month's fees if gross revenues are not reported.