What items are specifically excluded from the definition of 'Gross Revenue' for a Learningrx franchise?

According to Learningrx's 2025 Franchise Disclosure Document, gross revenue is defined as the total of all receipts derived from services or products sold at the Learningrx center, encompassing cash, credit, checks, gift certificates, scrip, coupons, services, property, bartering, or other means of exchange. However, certain items are specifically excluded from this calculation.

The items excluded from gross revenue for a Learningrx franchise include sales tax receipts that the franchisee is legally obligated to collect from customers and actually remits to the government. Additionally, promotional or discount coupons, refunds, and other courtesy discounts are excluded, but only to the extent that the franchisee does not realize any revenue from them. Finally, the cost of employee receipt of services or products, if provided free or any portion not paid for by an employee, is also excluded from gross revenue.

It is important to note that Learningrx franchisees cannot deduct credit card or debit card processing fees from gross revenue. This means that the royalty calculation is based on the total receipts before any deductions for these processing fees. This policy ensures that Learningrx receives its royalty based on the full value of sales, regardless of the payment method used by customers. Understanding these inclusions and exclusions is crucial for Learningrx franchisees to accurately calculate and report their gross revenue, which directly impacts their royalty payments to the franchisor.