What is included in the definition of 'Gross Revenues' for a Canopy Lawn Care franchise?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) The term "Gross Revenues" means amounts derived from all products or services sold from or through your Franchise (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
- (ii) all customer refunds, valid discounts and coupons, and credits made by the Fencing Business (exclusions will not include any reductions for credit card user fees, financing program fees, returned checks or reserves for bad credit or doubtful accounts).
Source: Item 6 — OTHER FEES (FDD pages 19–24)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, "Gross Revenues" encompasses all income derived from products and services sold through the franchise across all territories. This includes sales made for cash or credit, or a combination thereof. The definition extends to 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 occurs, whichever happens first, regardless of whether final payment has been received.
However, the definition of Gross Revenues for Canopy Lawn Care also specifies certain exclusions. These exclusions include the amount of any tax imposed by a governmental authority directly on sales and collected from customers, provided that the tax amount is shown separately and actually paid to the appropriate authority. Additionally, customer refunds, valid discounts and coupons, and credits made by the Fencing Business are excluded from Gross Revenues.
It is important to note that reductions for credit card user fees, financing program fees, returned checks, or reserves for bad credit or doubtful accounts are not considered exclusions from Gross Revenues. This means that Canopy Lawn Care franchisees are responsible for paying royalties on the full sales amount before deducting these types of expenses. Understanding this definition is crucial for accurately calculating royalty payments and assessing the overall financial performance of the franchise.