What items are excluded from 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, the definition of 'Gross Revenues' has some specific exclusions. Gross Revenues are defined as amounts derived from all products or services sold from or through your Franchise, including sales made for cash or credit, or partly for cash and partly for credit. It also includes the fair market value of any services or products received in barter or exchange for services and products. Gross Revenues are considered received when the services or products are delivered or when the sale takes place, whichever comes first, regardless of whether final payment has been received.
However, Gross Revenues for a Canopy Lawn Care franchise do not include the amount of any tax imposed by a governmental authority (federal, state, or municipal) directly on sales, provided that the tax amount is shown separately and actually paid to the appropriate authority. Additionally, Gross Revenues exclude all customer refunds, valid discounts and coupons, and credits made by the Fencing Business.
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 excluded from Gross Revenues. This means that Canopy Lawn Care franchisees will pay royalties on the total revenue before deducting these types of expenses. Understanding these exclusions is crucial for accurately calculating royalty payments and assessing the overall financial performance of the franchise.