How are credit transactions included in Deka Lash's Gross Revenue calculation?

According to Deka Lash's 2024 Franchise Disclosure Document, credit transactions are included in gross revenue calculations as of the transaction date, without any deductions for uncollected credit accounts. This means that when a Deka Lash customer pays with credit, the full amount of the sale is counted towards the franchise's gross revenue at that time, regardless of whether the credit card payment is ultimately collected.

This policy has important implications for Deka Lash franchisees. It simplifies revenue tracking, as franchisees do not need to adjust their reported revenue based on credit card payment statuses. However, it also means that franchisees are responsible for managing and absorbing any losses from uncollected credit payments. This could impact their cash flow and profitability, especially if they experience a high volume of credit transactions that are later disputed or unpaid.

Franchisees should be aware of this policy and implement strategies to minimize the risk of uncollected credit payments, such as verifying customer credit information and promptly addressing any payment issues. Understanding this aspect of revenue calculation is crucial for accurate financial planning and management of a Deka Lash franchise.