What items are excluded from the 'Gross Revenue' calculation for a Dermani Medspa franchise?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Gross Revenue"– the 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, 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 any staff or personnel who will provide the actual medical services, clients customer refunds, discounts from coupon sales, rebates, sales taxes, and/or other taxes collected from customers by you and actually transmitted to the appropriate taxing authorities.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, "Gross Revenue" is defined as all revenue generated from the sale of medical spa and cosmetic services related to skin, cosmetic injectables, laser hair removal treatments, membership fees, and all other products and services offered at or from the Dermani Medspa, including off-premises services, mobile clinics, and temporary locations, as well as proceeds from business interruption insurance policies. This encompasses all sales, whether for cash, check, or credit, and regardless of collection status.
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, 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 this definition is crucial because royalty fees are typically calculated as a percentage of Gross Revenue. Knowing what is included and excluded ensures accurate reporting and payment of royalties. It also helps in financial planning and forecasting, as these exclusions can impact the overall revenue figures used for business analysis and decision-making.