How are barter and exchange transactions valued when calculating Dryject's Gross Revenues?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
All barter and/or exchange transactions pursuant to which the Franchised Business furnishes services and/or products in exchange for goods or services to be provided to You or the Franchised Business by a vendor, supplier or customer shall, for the purpose of determining Gross Revenues, be valued at the full value of the goods and/or services so provided to You or the Franchised Business.
Source: Item 23 — RECEIPT (FDD pages 50–68)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, when calculating Gross Revenues, barter and exchange transactions are valued at the full value of the goods and/or services provided to the franchisee or the franchised business. This means that if a Dryject franchisee provides turf aeration services in exchange for, say, landscaping services for their business, the Gross Revenue calculation will include the full retail value of the landscaping services received.
This valuation method impacts the royalties and fees that Dryject franchisees pay, as these are often calculated as a percentage of Gross Revenues. By including the full value of bartered goods and services in Gross Revenues, Dryject ensures that it receives its due share of the economic benefit derived from the franchise, even when transactions don't involve direct cash payments.
For a prospective Dryject franchisee, this means carefully tracking the fair market value of any bartered goods or services. Accurate record-keeping is essential to correctly calculate Gross Revenues and avoid potential disputes with Dryject regarding royalty payments. Franchisees should consult with a financial professional to ensure they understand and comply with these valuation rules.