What is the alternative calculation for the minimum local advertising spend for a Canopy Lawn Care franchise?

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Accepted Answer

| Type of Fee | Amount | Due Date | Remarks | |----------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | Primary Fees | | | Royalty Fee | The greater of 8% of Gross Revenue or the required Minimum Royalty | Payable by EFT monthly on or before the fifth of each month | Payable to us. (Notes 1 and 2) If applicable, and at our discretion, the Minimum Royalty may be abated during certain months of the year due to seasonal factors in your Territory. We will determine if seasonal factors apply to your Territory in our sole discretion. Seasonal factors apply to winter weather states in which adverse weather conditions do not allow franchisees to provide lawn care services. | | Technology Fee (Note 3) | 2% of Gross Revenues | Payable by EFT monthly on or before the 5 ^th of each month | The technology fee is collected monthly by us and provides the Franchisee with on-going access to, and the use of, automated lawn measurements, sales and marketing automation, scheduling and routing, billing, and CRM software. | | Brand Fund Contribution | Currently 1% of Gross Revenues. Maximum of 2% of Gross Revenues | Payable by EFT monthly on or before the 5 ^th of each month | Payable to us. Any amounts you are required to contribute to the Brand Fund will be counted toward your required local marketing expenditures. | Source: Item 6 — OTHER FEES (FDD pages 19–24)

What is the alternative calculation for the minimum local advertising spend for a Canopy Lawn Care franchise?

Answer from 2025 FDD Document

What This Means (2025 FDD)

Type of Fee	Amount	Due Date	Remarks
		Primary Fees
Royalty Fee	The greater of 8% of Gross Revenue or the required Minimum Royalty	Payable by EFT monthly on or before the fifth of each month	Payable to us. (Notes 1 and 2) If applicable, and at our discretion, the Minimum Royalty may be abated during certain months of the year due to seasonal factors in your Territory. We will determine if seasonal factors apply to your Territory in our sole discretion. Seasonal factors apply to winter weather states in which adverse weather conditions do not allow franchisees to provide lawn care services.
Technology Fee (Note 3)	2% of Gross Revenues	Payable by EFT monthly on or before the 5 ^th of each month	The technology fee is collected monthly by us and provides the Franchisee with on-going access to, and the use of, automated lawn measurements, sales and marketing automation, scheduling and routing, billing, and CRM software.
Brand Fund Contribution	Currently 1% of Gross Revenues. Maximum of 2% of Gross Revenues	Payable by EFT monthly on or before the 5 ^th of each month	Payable to us. Any amounts you are required to contribute to the Brand Fund will be counted toward your required local marketing expenditures.