For The Standardx, how is 'Net Revenue' defined for the purpose of calculating the Way Commission?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
"Way Commission" means a commission on all ancillary services and products booked through the Way integrated channels and not cancelled by the purchaser equal to 5% of Net Revenues actually received and not refunded by Way or Owner with respect to such ancillary services and products ("Commission").
"Net Revenue" is defined as gross revenues actually received by Way from purchases of ancillary services and products, less any refunds, sales taxes, and third-party transaction fees (including but not limited to credit card processing fees).
Source: Item 18 — OTHER INCOME (LOSS), NET (FDD pages 187–399)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, 'Net Revenue' for the Way Commission is defined as the gross revenues Way actually receives from purchases of ancillary services and products. From this amount, any refunds, sales taxes, and third-party transaction fees are deducted. These third-party fees specifically include credit card processing fees. The Way Commission is a commission on all ancillary services and products booked through Way integrated channels that are not cancelled by the purchaser. The commission is equal to 5% of Net Revenues actually received and not refunded by Way or the owner.
This definition is important for prospective The Standardx franchisees because it clarifies the base upon which the Way Commission is calculated. By subtracting refunds, sales taxes, and transaction fees, the 'Net Revenue' provides a more accurate figure for calculating the commission. This ensures that franchisees are not paying a commission on amounts that are passed through to other parties or refunded to customers.
The agreement specifies that the franchisee pays $1,250 USD per month plus the Way Commission commencing on the Service Effective Date. Understanding the 'Net Revenue' definition helps franchisees forecast their commission expenses more accurately and assess the overall cost-effectiveness of the Digital Ancillary Services Program offered through Way. Franchisees should pay close attention to how these deductions are tracked and reported to ensure transparency and accuracy in commission calculations.