What is the acceptable method of payment for the Canopy Lawn Care promissory note?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
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- All payments shall be made by preauthorized Automated Clearinghouse transactions ("ACH") or by such other reasonable method as holder directs at a bank specified by maker in writing to the holder as specified above.
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- Any payment is late if not received by holder within 10 days after it is due. If a payment is late, holder may, in its sole discretion elect to;
- A. Declare the entire unpaid principal and interest balances immediately due and payable; or
- B. Accept the late payment along with a late charge in the amount of 10% of the amount of the late payment. The late charge will be for the purpose of compensating holder for additional expenses which it is recognized that holder will incur as a result of the late payment.
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- All payments, as of the date they are received, will first be credited to any late charges due; the balance, if any, will then be credited to the outstanding interest balance; and the balance, if any, will then be credited to the outstanding principal balance.
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- In the event holder elects under 4A above to demand payment in full of the entire unpaid balance, holder will first provide maker with written notice of its election, demanding payment in full within 10 days. In the event a default exists after the 10-day notice period has expired, maker promises and agrees:
- A. That the entire outstanding principal and interest balances, including late charges, will bear interest from the original due date of the delinquent payment at the rate of 18% (default rate) per year (or if this rate exceeds the maximum permitted by law, then the interest rate will be the highest rate permitted by law); and
- B. To pay holders actual attorneys' fees and costs incurred in collection efforts as a result of the default.
Source: Item 23 — RECEIPT (FDD pages 55–199)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, payments on the promissory note must be made through preauthorized Automated Clearinghouse (ACH) transactions. Alternatively, Canopy Lawn Care may direct another reasonable payment method. The franchisee must specify in writing to Canopy Lawn Care the bank from which the payments will be made.
If a payment is not received within 10 days of the due date, it is considered late. In the event of a late payment, Canopy Lawn Care has the option to either declare the entire unpaid balance immediately due or accept the late payment along with a late charge. This late charge will amount to 10% of the overdue payment.
All payments are applied first to any late charges, then to outstanding interest, and finally to the outstanding principal balance. If Canopy Lawn Care demands full payment due to default, they will provide written notice, allowing 10 days for the franchisee to make the payment. Failure to comply within this period results in the outstanding balance accruing interest at a default rate of 18% per year, or the highest rate permitted by law, along with responsibility for Canopy Lawn Care's attorney's fees and collection costs.