In the context of a Dermani Medspa franchise, what specific services are included in the definition of 'Gross Revenue'?

According to Dermani Medspa's 2025 Franchise Disclosure Document, gross revenue for a franchised business encompasses all income generated from various sources related to the medspa. This includes revenue from the sale of medical spa and cosmetic services related to skin, cosmetic injectables, laser hair removal treatments, and membership fees. It also incorporates income from all other products and services offered at or from the Dermani Medspa, covering retail, wholesale, off-premises services, mobile clinics, and temporary locations, regardless of whether these sales are explicitly permitted. Gross revenue also includes proceeds from any business interruption insurance policies. These revenues are included whether the products or services are sold for cash, check, or credit, and regardless of whether the amounts are actually collected.

However, the definition of gross revenue for a Dermani Medspa franchise specifically excludes certain items. These exclusions include any tips received by staff or personnel who provide the actual medical services, customer refunds, discounts from coupon sales, rebates, sales taxes, and other taxes collected from customers that are then transmitted to the appropriate taxing authorities.

For a prospective Dermani Medspa franchisee, understanding what constitutes gross revenue is crucial because it directly impacts the calculation of royalty fees and other financial obligations to the franchisor. Franchisees need to accurately track and report all revenue streams, while also being aware of the allowable exclusions to ensure compliance with the franchise agreement. This definition provides clarity on what income is subject to royalty payments and helps in financial planning and reporting.