What is included in the calculation of 'Gross Sales' for a Fly To Fit franchise?

According to Fly To Fit's 2024 Franchise Disclosure Document, Gross Sales are defined as the total dollar amount of all sales generated through the Business for a given period. This includes, but is not limited to, payments for any services or products sold by the franchisee, whether those sales are for cash or credit. This broad definition ensures that all revenue streams are accounted for when calculating royalties and other fees.

However, the definition of Gross Sales also specifies certain exclusions. Specifically, Gross Sales does not include (i) bona fide refunds to customers, (ii) sales taxes collected by the franchisee, (iii) sales of used equipment not in the ordinary course of business, or (iv) sales of prepaid cards or similar products. It is important to note that while the sale of prepaid cards is excluded, the redemption of any such card or product will be included in Gross Sales.

For a prospective Fly To Fit franchisee, understanding this definition is crucial because it directly impacts the calculation of royalty fees and marketing contributions. By clearly outlining what is included and excluded from Gross Sales, Fly To Fit aims to provide transparency and avoid potential disputes over revenue reporting. Franchisees should pay close attention to these inclusions and exclusions to ensure accurate reporting and compliance with the franchise agreement.