What is included in the definition of 'Gross Revenues' for a My Salon Suite franchise?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
Gross Revenues means the total selling price of all services and products sold and accrued at, from, or through the Franchised Business, whether or not sold or performed at or from the Franchised Business, and all income and revenue of every other kind and nature related to the Franchised Business operation, whether for cash, check, debit, credit, barter, exchange, trade credit, items of financial or non-financial benefit to franchisee, or other credit transactions, and regardless of collection in the case of credit.
Gross Revenues does not include the amount of any applicable sales tax imposed by any federal, state, municipal or other governmental authority if such taxes are stated separately when the customer is charged, and the franchisee pays such amounts as and when due to the appropriate taxing authority.
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.
All barter and exchange transactions for which the franchisee furnishes services or products in exchange for goods or services to be provided to the franchisee by a vendor, or customer will be valued at the full retail value of the goods or services provided to Franchisee.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATION (FDD pages 78–83)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, Gross Revenues include the total selling price of all services and products sold and accrued at, from, or through the Franchised Business. This applies whether the sales or services are performed at the physical location of the franchise or elsewhere. The definition encompasses all income and revenue related to the franchise operation, regardless of the form of payment, including cash, check, debit, credit, barter, exchange, trade credit, or other credit transactions, and regardless of whether payment has been collected.
However, the definition of Gross Revenues for a My Salon Suite franchise specifically excludes certain items. These exclusions include any applicable sales tax imposed by federal, state, municipal, or other governmental authorities, provided that such taxes are stated separately when the customer is charged and are paid to the appropriate taxing authority when due. Additionally, the definition excludes the amount of any documented refunds, chargebacks, credits, and allowances given to customers in good faith, following the Franchisor's standard procedures for issuing such refunds.
Furthermore, all barter and exchange transactions, where the franchisee furnishes services or products in exchange for goods or services provided to the franchisee by a vendor or customer, are valued at the full retail value of the goods or services provided to the franchisee. This means that even non-cash transactions are accounted for in the Gross Revenues calculation at their equivalent cash value. This comprehensive definition ensures that all forms of revenue generation are included in the financial reporting for the My Salon Suite franchise, providing a clear picture of the business's overall performance.