What is included in the calculation of 'Gross Revenues' for a Canopy Lawn Care franchise?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- (f) "Gross Revenues" means amounts derived from all products or services sold from or through your Lawn Care Business (across all Territories), including any sale of products or services made for cash or credit, or partly for cash and partly for credit. "Gross Revenues" also includes the fair market value of any services or products received by you in barter or in exchange for services and products.
Gross Revenues are deemed received by the franchisee at the time the services or products are delivered or at the time the sale takes place, whatever occurs first, regardless if final payment has actually been received by the franchisee.
There is no rollover credit for weeks in which the royalty amount exceeds the minimum.
Gross Revenues do not include:
- (i) the amount of any tax imposed by any federal, state, municipal or other governmental authority directly on sales and collected from customers, provided that the amount of any such tax is shown separately and in fact paid by you to the appropriate governmental authority; and
Source: Item 22 — CONTRACTS (FDD page 55)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, 'Gross Revenues' are defined as the income derived from all products and services sold through your Lawn Care Business across all territories. This includes sales made for cash or credit, or a combination of both. The calculation also incorporates the fair market value of any services or products received in barter or exchange for other services and products.
Gross Revenues are considered received when the services or products are delivered, or when the sale takes place, whichever happens first. This is regardless of whether the franchisee has actually received final payment. However, there is no rollover credit for weeks in which the royalty amount exceeds the minimum.
Importantly, the definition of Gross Revenues for Canopy Lawn Care specifically excludes the amount of any tax imposed by a governmental authority (federal, state, or municipal) directly on sales and collected from customers. This exclusion is valid only if the tax amount is shown separately and is, in fact, paid by the franchisee to the appropriate governmental authority.