For Degree Wellness, what is included in the definition of 'Gross Revenues' for the Studio?

According to Degree Wellness's 2025 Franchise Disclosure Document, "Gross Revenues" for the Studio are comprehensively defined. This definition is crucial because the Management Fee paid by the Licensed Provider to the Management Company is directly calculated from these Gross Revenues.

Specifically, Gross Revenues include the total of all revenue and receipts derived from the operation of the Studio. This encompasses all amounts received at or away from the Studio's physical location, as well as revenue generated through the business the Studio conducts. Examples of revenue sources include fees for Studio Services, fees from the sale of other services, gift certificate sales, and revenue from product sales. The form of payment, whether cash, check, credit card, debit card, or other credit transactions, does not affect its inclusion in Gross Revenues.

However, there are explicit exclusions from the Gross Revenues calculation. Sales taxes collected from patients and remitted to the appropriate taxing authority are excluded. Additionally, any patient refunds and credits that the Studio actually makes are also deducted from the total to arrive at the Gross Revenues figure. This definition provides clarity for both the Licensed Provider and the Management Company in determining the basis for the Management Fee calculation, ensuring transparency and minimizing potential disputes.