What right does Canopy Lawn Care have regarding the financial data submitted by franchisees?
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)
Based on the 2025 Franchise Disclosure Document, Canopy Lawn Care defines "Gross Revenues" as 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.
This means that Canopy Lawn Care franchisees must report all revenue earned, regardless of payment status, and also include the fair market value of any bartered services or products. This comprehensive definition ensures that royalty fees are calculated on all economic benefits the franchisee receives from the business.
Gross Revenues do not include 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. This means that franchisees do not pay royalties on sales tax collected from customers and remitted to the government, as long as these taxes are separately accounted for.