What is included in the 'Gross Revenue' calculation for a Dermani Medspa franchise?

According to Dermani Medspa's 2025 Franchise Disclosure Document, 'Gross Revenue' for a franchised business encompasses all revenue generated from various sources. 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 revenue from all other products and services offered at or from the Dermani Medspa. This definition extends to all other income of every kind and nature related to, derived from, or originating from the Dermani Medspa, whether at retail or wholesale. Gross revenue also includes off-premises services, mobile clinics, and temporary locations, regardless of whether these sales are permitted or not. Proceeds from any business interruption insurance policies are also included in the gross revenue calculation. All of these revenues are included whether the products or services are sold for cash, check, or credit, and regardless of collection in the case of check or credit.

However, the calculation 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, rebates, sales taxes, and/or other taxes collected from customers by the franchisee that are actually transmitted to the appropriate taxing authorities.

For a prospective franchisee, understanding what constitutes 'Gross Revenue' is crucial because it directly impacts royalty payments and other financial obligations to Dermani Medspa. Franchisees should pay close attention to the inclusions and exclusions to accurately calculate and report their gross revenue, ensuring compliance with the franchise agreement and avoiding potential disputes with the franchisor.