factual

What constitutes 'Gross Revenue' for a Dermani Medspa location during the Measurement Period?

Q: What constitutes 'Gross Revenue' for a Dermani Medspa location during the Measurement Period?

#### Notes to Part A: - 1. "Gross Revenue" represents the actual gross revenue, less refunds, from the sale of products and services, including skincare products, cosmetic injectables services, skin rejuvenation facial services, laser hair removal, hydrafacial®, and microneedling for each Location during the Measurement Period. Amounts for tips collected on behalf of the staff have been removed from Revenue and from Payroll costs. Sales Tax cost is also not included in Revenue. - 2. "Dislcosed Expenses" only include Cost of Goods Sold, Payroll Expenses, Rent Expenses, and Spa Supplies. There are other expenses that will be incurred in the operation of your dermani MEDSPA®. Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 58–61)

Dermani_Medspa Franchise · 2025 FDD

Answer from 2025 FDD Document

Notes to Part A:

1. "Gross Revenue" represents the actual gross revenue, less refunds, from the sale of products and services, including skincare products, cosmetic injectables services, skin rejuvenation facial services, laser hair removal, hydrafacial®, and microneedling for each Location during the Measurement Period. Amounts for tips collected on behalf of the staff have been removed from Revenue and from Payroll costs. Sales Tax cost is also not included in Revenue.
1. "Dislcosed Expenses" only include Cost of Goods Sold, Payroll Expenses, Rent Expenses, and Spa Supplies. There are other expenses that will be incurred in the operation of your dermani MEDSPA®.

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 58–61)

What This Means (2025 FDD)

According to Dermani Medspa's 2025 Franchise Disclosure Document, 'Gross Revenue' for both company-owned and franchised locations represents the actual gross revenue, less refunds, derived from the sale of products and services. These include skincare products, cosmetic injectables services, skin rejuvenation facial services, laser hair removal, hydrafacial®, and microneedling during the Measurement Period. The Measurement Period for the financial performance representation in Item 19 is the 12-month period from January 1, 2024, to December 31, 2024.

For practical purposes, this means a Dermani Medspa franchisee's gross revenue calculation excludes sales tax and tips collected on behalf of the staff. The franchisor removes these amounts from revenue figures to provide a clearer picture of the business's actual earnings from its core offerings. This standardized definition allows prospective franchisees to compare the financial performance of different locations more accurately.

It's important to note that the financial performance representations are based on unaudited information reported by Dermani Medspa affiliates. The FDD advises prospective franchisees that these figures have not been audited by a certified public accountant. Dermani Medspa will provide written substantiation of the financial performance information at its main office upon reasonable request.

One franchised location also performs services such as Coolsculpting®, which will not be offered or sold at franchised Dermani Medspas. Therefore, the revenues received from this service at this one location have been excluded from the Gross Revenue figures for that location in the table. This exclusion ensures that the financial data presented is relevant and comparable to the business model being offered to new franchisees.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.

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