When are sales, excise, or gross receipts taxes due to Deka Lash?

According to Deka Lash's 2024 Franchise Disclosure Document, sales taxes are explicitly excluded from the calculation of 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. It 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.

However, 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.

Therefore, while Deka Lash franchisees are responsible for collecting and remitting sales taxes to the appropriate tax authorities, these taxes are not considered part of the revenue on which Deka Lash calculates royalties and other fees. The FDD does not specify when sales taxes are due to the relevant tax authorities, as this depends on local and state regulations, not on Deka Lash's policies.