What receipts are excluded from the 'Gross Revenue' calculation for a Learningrx franchise?

According to Learningrx's 2025 Franchise Disclosure Document, the calculation of 'Gross Revenue' for royalty purposes excludes specific types of receipts. 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, the following are explicitly excluded from the Gross Revenue calculation: sales tax receipts that the franchisee is legally obligated to collect from customers and actually remits to the government, promotional or discount coupons, refunds and other courtesy discounts to the extent that the franchisee realizes no revenue from them, and employee receipt of services or products, if free, or any portion not paid for by an employee.

It is important to note that Learningrx franchisees may not deduct credit card or debit card processing fees from Gross Revenue. This means that while certain discounts, refunds, and sales taxes are subtracted, franchisees must still pay royalties on the full amount of sales before accounting for credit card processing costs. This can impact the actual royalty amount paid, as these fees can represent a significant expense for businesses that process a large volume of credit card transactions.