What is included in the definition of 'Gross Revenue' for a Dermani Medspa franchise?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
"Gross Revenue" of the Franchised Business means all of the dermani MEDSPA'®s revenue generated from the sale of all medical spa and cosmetic services related to skin rejuvenation, cosmetic injectables, laser hair removal treatments, membership fees, and all other products and services offered at or from the dermani MEDSPA®, and all other income of every kind and nature related to, derived from, or originating from the dermani MEDSPA®, whether at retail or wholesale, including off-premises services, mobile clinics, and temporary locations (whether these sales are permitted or not), and proceeds of any business interruption insurance policies, whether any of the products or services are sold for cash, check, or credit, and regardless of collection in the case of check or credit; except that "Gross Revenue" excludes any tips received by staff or personnel who will provide the actual medical services, clients customer refunds, discounts from coupon sales, sales taxes, and/or other taxes collected from customers by you and actually transmitted to the appropriate taxing authorities.
We reserve the right to modify our policies and practices regarding revenue recognition, revenue reporting, and the inclusion or exclusion of certain revenue from "Gross Revenue", as circumstances, business practices, and technology change. For example, and by way of illustration and not limitation, in the event new technologies and practices, such as "Groupon," "Living Social" and other "deal-of-the-day" discounts, generate revenue for the dermani MEDSPA® that may not be associated with a particular sale of products, we may establish policies to identify which revenues are, and are not, part of Gross Revenue.
Source: Item 6 — OTHER FEES (FDD pages 14–20)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, Gross Revenue includes all revenue generated from the sale of medical spa and cosmetic services related to skin rejuvenation, cosmetic injectables, laser hair removal treatments, membership fees, and all other products and services offered at or from the Dermani Medspa. This encompasses all income related to the Dermani Medspa, whether at retail or wholesale, including off-premises services, mobile clinics, and temporary locations, regardless of whether these sales are permitted. It also includes proceeds from any business interruption insurance policies. Revenue is counted regardless of whether payment is made in cash, check, or credit, and irrespective of collection in the case of check or credit.
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, client customer refunds, discounts from coupon sales, sales taxes, and other taxes collected from customers that are actually transmitted to the appropriate taxing authorities.
Dermani Medspa also retains the right to modify its policies regarding revenue recognition, revenue reporting, and the inclusion or exclusion of certain revenue from Gross Revenue as circumstances, business practices, and technology change. This allows Dermani Medspa to adapt to new technologies and practices, such as "deal-of-the-day" discounts, and to establish policies to identify which revenues are, and are not, part of Gross Revenue. This flexibility could impact how royalties and other fees are calculated over time, so franchisees should stay informed of any changes.