What must accompany each Royalty Fees payment to Canopy Lawn Care?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.4 The Royalty Fees shall be payable to Franchisor on or before the 5th day of each month and shall be payable through the entire Initial Term of this Agreement and any Interim Period. If Franchisee signs a Successor Franchise Agreement, Franchisee will be required to pay the Royalty Fees set forth therein. Franchisor has the right to vary the Royalty Fees and how it is determined in any Successor Franchise Agreement Franchisee may sign. Franchisee shall pay the Royalty Fees monthly or in such other frequency as Franchisor may in its sole discretion require upon written notice to Franchisee by Franchisor. Franchisee shall not subordinate to any other obligation its obligation to pay the Royalty Fees or any other fee or charge hereunder. Each Royalty Fees payment will be accompanied by a report as set forth in Section 5.4(a).
- (a) Each Royalty Fees payment shall be, without exception, accompanied by a statement of the previous month's Gross Revenues on a form approved and provided to Franchisee by Franchisor. Each failure to include a fully completed statement of the previous month's Gross
Source: Item 22 — CONTRACTS (FDD page 55)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, each royalty fee payment must be accompanied by a statement of the previous month's gross revenues. This statement must be on a form approved and provided by Canopy Lawn Care.
The requirement to submit a gross revenue statement with each royalty payment ensures that Canopy Lawn Care can accurately calculate and verify the royalty fees owed. This is a standard practice in franchising, allowing the franchisor to monitor the franchisee's sales and ensure compliance with the franchise agreement.
Failure to include a fully completed statement of the previous month's gross revenues with the royalty fees is considered a material breach of the Canopy Lawn Care franchise agreement. This highlights the importance of accurate and timely reporting of financial information to the franchisor. Franchisees should ensure they understand the reporting requirements and maintain accurate records to avoid potential breaches of contract.