What deductions are Dryject franchisees allowed to make from Gross Revenues?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
You will deduct from the Franchised Business' Gross Revenues (but only to the extent they have been included) the amount of all sales tax receipts or similar tax receipts which, by law, are chargeable to customers, if such taxes are separately stated when the customer is charged and as long as such taxes are promptly paid to the appropriate taxing authority.
You may also deduct from the Franchised Business' Gross Revenues the amount of any documented refunds, charge-backs, credits and allowances You pay in good faith to customers.
Source: Item 23 — RECEIPT (FDD pages 50–68)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, franchisees can deduct certain items from their Gross Revenues. Specifically, a Dryject franchisee may deduct the amount of all sales tax receipts or similar tax receipts which, by law, are chargeable to customers, provided these taxes are separately stated when the customer is charged and promptly paid to the appropriate taxing authority.
Additionally, Dryject franchisees are allowed to deduct the amount of any documented refunds, charge-backs, credits, and allowances they pay in good faith to customers. This means that if a customer receives a refund or credit for any reason, the franchisee can subtract that amount from their gross revenues when calculating royalties and other fees owed to Dryject.
It is important for prospective Dryject franchisees to maintain accurate records of all sales tax receipts, refunds, charge-backs, credits, and allowances to ensure accurate reporting of Gross Revenues and to avoid any disputes with Dryject. Understanding these deductions is crucial for managing the financial aspects of the franchise and calculating the actual revenue on which royalties are based.