If a Fitstop franchisee exchanges tuition for services, is that included in Gross Revenue?

According to Fitstop's 2024 Franchise Disclosure Document, gross revenue includes the total amount of consideration received for goods and services, regardless of the form of payment. This encompasses cash, credit, or payment in kind. Specifically, the definition of "Gross Revenue" includes barter, which is defined as the exchange of tuition for services or products.

This means that if a Fitstop franchisee provides training or classes in exchange for services or products, the value of those services or products received is considered part of the franchisee's gross revenue. This is important because the royalty fee and fund contributions that Fitstop franchisees must pay are calculated as a percentage of gross revenue.

However, the FDD also specifies certain exclusions from gross revenue, such as refunds, uncollectible debts, taxes collected and paid to a tax authority, and tuition credits for staff children. Therefore, while barter transactions are included, certain other items are not. It is important for prospective franchisees to understand exactly how gross revenue is defined, as this figure directly impacts the amount of royalty fees and fund contributions they will owe to Fitstop.