What is the 'Gross Sales' definition for calculating fees for a Focalpoint Coaching franchise?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
J. DEFINITION OF "GROSS SALES".
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 the 2025 Focalpoint Coaching Franchise Disclosure Document, "Gross Sales" is defined as all revenue a franchisee derives from operating their franchised business. This includes all amounts received for services and products sold, whether paid in cash, check, credit/debit card, barter exchange, trade credit, or other credit transactions, and all other income related to the business.
However, the definition does provide some exclusions. Gross Sales does not include federal, state, or municipal sales, use, or service taxes collected from clients and paid to the appropriate taxing authority. Additionally, the definition allows for a reduction in Gross Sales by the amount of any documented refunds, credits, allowances, and charge-backs that the franchised business in good faith gives to clients.
For a prospective Focalpoint Coaching franchisee, understanding this definition is crucial because it directly impacts the calculation of royalties and other fees payable to the franchisor. Franchisees should maintain accurate records of all sales, taxes collected, and any refunds or credits issued to ensure accurate reporting and fee calculation. This clear definition helps avoid disputes over revenue calculations and ensures transparency in the financial relationship between the franchisee and Focalpoint Coaching.