Are advertising materials and services provided to the Canopy Lawn Care franchisee through the Brand Fund?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.4 Franchisor has established a production and marketing fund (the "Brand Fund") to promote Canopy® businesses in the System and conduct other promotional and marketing activities.
Franchisor currently requires that you contribute 1% of your Gross Revenues to the Brand Fund ("Brand Fund Contribution").
Franchisee must pay the Brand Fund Contribution at the same time as the Royalty Fees.
Franchisor reserves the right to increase the Brand Fund Contribution upon at least 30 days' notice to Franchisee, provided that the Brand Fund Contribution will not exceed 2% of Gross Revenues.
- 11.5 Advertising materials and services will be provided to Franchisee through the Brand Fund.
Franchisor may occasionally provide for placement of advertising on behalf of the entire System, including franchisees, or on behalf of a particular region, that may not include Franchisee, through the Brand Fund.
Franchisor reserves the right to use the Brand Fund Contribution from the Brand Fund to place advertising in national media or regional media (including broadcast, print, Internet or other media) in the future.
Franchisee acknowledges that the Brand Fund is intended to maximize the general brand recognition of the System.
Franchisor is not obligated to expend Brand Fund Contributions on Franchisee's behalf or benefit or expend Brand Fund Contributions equivalent or proportionate to Franchisee's Brand Fund Contribution on Franchisee's behalf or benefit.
- 11.6 National advertising, public relations, and promotions will be started and continued by Franchisor, when, in Franchisor's sole discretion, Franchisor deems that it has accumulated sufficient moneys for that purpose.
The Brand Fund will be used to promote the System, Services and/or Products sold by the franchisees and will not be used to sell additional franchises.
Franchisor's accounting and marketing personnel or a representative designated by Franchisor will administer the Brand Fund.
The Brand Fund will collect Brand Fund Contributions from all franchisees.
All payments to the Brand Fund must be spent on advertising, public relations, market research, promotion, marketing of goods and services provided by Franchisor, outside vendors, including but not limited to marketing agencies, and administration of the Brand Fund, including but not limited to, salaries, overhead, administrative, accounting, collection and legal costs and expenses.
The Brand Fund Contributions will be maintained by Franchisor in a separate account.
An annual un-audited financial statement of the Brand Fund, at the expense of the Brand Fund, will be available 120 days after Franchisor's fiscal year end to Franchisee for review once a year upon request.
- 11.7 The Brand Fund Contributions collected by the Brand Fund are non-refundable.
Source: Item 22 — CONTRACTS (FDD page 55)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, advertising materials and services are provided to franchisees through the Brand Fund. Franchisees are currently required to contribute 1% of their gross revenues to the Brand Fund, with the possibility of this increasing to a maximum of 2% of gross revenues, provided that Canopy Lawn Care gives at least 30 days' notice.
The Brand Fund is used to promote Canopy Lawn Care businesses and conduct marketing activities. Canopy Lawn Care may use the Brand Fund to place advertising on behalf of the entire system or a particular region, which may or may not include the franchisee's location. The funds are intended to maximize brand recognition for the system.
While franchisees contribute to the Brand Fund, Canopy Lawn Care is not obligated to spend the contributions specifically on the franchisee's behalf or in proportion to their contribution. The Brand Fund will be used to promote the services and products sold by franchisees and will not be used to sell additional franchises. The Brand Fund Contributions collected by the Brand Fund are non-refundable.
National advertising, public relations, and promotions will be initiated and maintained by Canopy Lawn Care when sufficient funds have accumulated, in their sole discretion. The Brand Fund is administered by Canopy Lawn Care's accounting and marketing personnel or a designated representative. An annual unaudited financial statement of the Brand Fund will be available to franchisees for review once a year upon request, 120 days after Canopy Lawn Care's fiscal year end.