For Floyds 99, what is included in the definition of 'Annual Net Revenue'?

According to Floyds 99's 2025 Franchise Disclosure Document, 'Annual Net Revenue' is defined as all revenue from a Barbershop in a specified year, less discounts approved in advance by Floyds 99, but excluding any sales taxes. This definition is important for prospective franchisees as it clarifies what constitutes revenue for the purpose of financial performance representations in the FDD.

For a potential Floyds 99 franchisee, understanding this definition is crucial for accurately interpreting the financial performance data presented in Item 19 of the FDD. The 'Annual Net Revenue' figures provided in the charts represent the gross income a barbershop generates, adjusted for approved discounts and excluding sales taxes. This provides a standardized metric for comparing the financial performance of different Floyds 99 locations.

It is important to note that the definition specifies that discounts must be approved in advance by Floyds 99 to be deducted from the gross revenue. This implies that franchisees need to adhere to the franchisor's policies regarding discounts to ensure accurate reporting of their 'Annual Net Revenue'. Sales taxes are excluded from the calculation, which is a standard practice as these taxes are collected on behalf of the government and do not represent income for the business.

The FDD also notes that written substantiation of the data presented in the financial performance representation will be made available to you upon reasonable request. This means that a prospective franchisee can request documentation supporting the 'Annual Net Revenue' figures presented, allowing for further verification and due diligence.