factual

What is excluded from 'Gross Revenues' when calculating revenue for a My Salon Suite franchise?

My_Salon_Suite Franchise · 2025 FDD

Answer from 2025 FDD Document

Also excluded from Gross Revenues are the amount of any documented refunds, chargebacks, credits, and allowances given to customers in good faith pursuant to Franchisor's standard procedures for issuing such refunds.

Source: Item 23 — RECEIPTS (FDD pages 95–230)

What This Means (2025 FDD)

According to the 2025 My Salon Suite Franchise Disclosure Document, the calculation of Gross Revenues excludes documented refunds, chargebacks, credits, and allowances given to customers in good faith, provided these are issued following My Salon Suite's standard procedures.

This means that when My Salon Suite franchisees calculate their total revenue for purposes such as royalty payments or financial reporting, they can deduct any money they've legitimately returned to customers. This typically covers situations where a customer was dissatisfied with a service or product, or if there was an error in billing.

The stipulation that these deductions must align with My Salon Suite's standard refund procedures is important. It ensures consistency across all franchise locations and prevents franchisees from arbitrarily reducing their reported revenue. Franchisees should familiarize themselves with these standard procedures to ensure compliance and accurate financial reporting. This is a fairly standard practice in franchising, as it ensures that franchisees are not paying royalties on revenue they did not actually receive or retain due to legitimate customer refunds.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.