What deductions are permitted from 'Gross Sales' when calculating revenue for a Focalpoint Coaching franchise?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
As used in this Agreement, the term "Gross Sales" means all revenue that Franchisee derives from operating the Franchised Business, including, but not limited to, all amounts that Franchisee receives for Services and products sold or rendered by the Franchised Business, and whether from cash, check, credit and debit card, barter exchange, trade credit, or other credit transactions and all other income of every kind and nature related to the Franchised Business, but (1) excluding all federal, state, or municipal sales, use, or service taxes collected from clients and paid to the appropriate taxing authority and (2) reduced by the amount of any documented refunds, credits, allowances, and charge-backs the Franchised Business in good faith gives to clients.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, "Gross Sales" is defined as all revenue derived from operating the Franchised Business. This includes all amounts received for services and products sold, whether in cash, check, credit/debit card, barter exchange, trade credit, or other credit transactions, and all other income related to the Franchised Business.
However, Focalpoint Coaching permits certain deductions from this total revenue to arrive at the "Gross Sales" figure used for royalty calculations or other financial reporting. Specifically, franchisees can exclude all federal, state, or municipal sales, use, or service taxes collected from clients and paid to the appropriate taxing authority. Additionally, the gross sales can be reduced by the amount of any documented refunds, credits, allowances, and charge-backs the Franchised Business in good faith gives to clients.
For a prospective Focalpoint Coaching franchisee, this definition is important because it clarifies what income is subject to franchise fees and other financial obligations. Understanding the allowable deductions ensures accurate reporting and can impact the overall profitability of the franchise. It is crucial to maintain proper documentation for all deductions, such as tax payments and client refunds, to justify these reductions in reported gross sales.