How is 'Average Gross Revenue' defined for Deka Lash franchises?

According to Deka Lash's 2024 Franchise Disclosure Document, "Average Gross Revenue" is calculated by summing the Gross Revenues in a table and dividing by the number of entries in that table. Gross Revenue itself encompasses all revenue generated from the franchise's operations, regardless of the source. This includes sales, memberships, prepaid programs, rentals, products, apparel, gear, services, service charges, gross sales on deal sites like Groupon and Living Social attributed to the franchise, service contracts, and any other form of payment or benefit received, including contra-deals, barters, and payments in kind.

However, Gross Revenue for Deka Lash specifically excludes sales tax, returned merchandise, and isolated sales of furniture or fixtures. Credit transactions are included in revenue as of the transaction date, without any deduction for uncollected accounts. The FDD provides financial performance representations based on this definition, showing average and median gross revenues for different performance segments of Deka Lash studios. For example, the average gross revenue for the top third of studios was $495,184, while the middle third averaged $287,860, and the bottom third averaged $152,349.

Prospective franchisees should understand that these figures are based on historical data from existing Deka Lash locations and that individual results may vary. The FDD explicitly states that there is no assurance that a new franchisee will achieve the same level of revenue. It is important to carefully review the complete Item 19 of the FDD and request written substantiation for the financial performance representation to fully understand the basis for these figures and their potential applicability to a specific location or situation.