How does Deka Lash define 'Gross Studio Sales' for the purpose of calculating the Royalty Fee?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
Note 2. Gross Studio Sales or Gross Revenue. "Gross Studio Sales" or "Gross Revenue" includes all revenue generated from the operation of the Franchise from whatever source derived and means the total Revenue for any calendar month or other accounting period specified in the Operations Manual. "Gross Revenue" includes, but is not limited to sales, memberships, prepaid programs, rentals, products, apparel, gear, vending, exchanges, services, labor, service charges, gross sales on deal sites (including Groupon and Living Social) attributed to your franchise, service contracts, any other type of remuneration, gift, contra-deal, barter of products or services, charity, payment in kind, or any other benefit or value that is received or deferred to be received. Gross Revenue does not include sales tax, returned merchandise and isolated sales of furniture or fixtures. Credit transactions will be included in Revenue as of the date of the transaction without deduction for uncollected credit accounts. The proceeds from any business interruption insurance or eminent domain recovery you receive will be included in Gross Revenue.
Source: Item 6 — OTHER FEES (FDD pages 15–23)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, Gross Studio Sales, also referred to as Gross Revenue, encompasses all revenue generated from the franchise's operations, irrespective of the source. This includes revenue for any calendar month or accounting period as specified in the Operations Manual.
Specifically, Gross Revenue includes sales, memberships, prepaid programs, rentals, products, apparel, gear, vending, exchanges, services, labor, service charges, gross sales on deal sites like Groupon and Living Social attributed to the franchisee, service contracts, and any other form of remuneration. This extends to gifts, contra-deals, barters of products or services, charity contributions, payments in kind, or any other benefit or value received or deferred.
However, Gross Revenue does not include sales tax, returned merchandise, or isolated sales of furniture or fixtures. Credit transactions are included in revenue as of the transaction date, without deductions for uncollected credit accounts. Furthermore, any proceeds from business interruption insurance or eminent domain recovery are included in Gross Revenue. This comprehensive definition ensures that all forms of income related to the Deka Lash studio are considered when calculating royalty fees.