What authorization documents are required by Canopy Lawn Care for direct debit payments?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to require you to pay fees and other amounts due to us via electronic funds transfer or other similar means, as described in the Franchise Agreement. If payments are required in this method, you must comply with our procedures and perform all acts and deliver and sign all documents, including authorization (in the form attached to the Franchise Agreement as Attachment D or any other form that we may accept) for direct debits from your business bank operating account, which may be necessary to assist in or accomplish payment by this method. Under this procedure you shall authorize us to initiate debit entries and/or credit correction entries to a designated checking or savings account for payments of fees and other amounts payable to us and any interest that may be owing. You shall make the funds available to us for withdrawal by electronic transfer no later than the payment due date. If you have not timely paid the monthly Royalty Fees and Brand Fund Contribution to us for any month, then we shall be authorized, at our option, to debit your account for the monthly Royalty Fees and the Brand Fund Contribution.
Source: Item 6 — OTHER FEES (FDD pages 19–24)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, franchisees may be required to make payments via electronic funds transfer. If this payment method is required, the franchisee must authorize Canopy Lawn Care to initiate debit entries from their business bank operating account.
To comply with this requirement, franchisees must sign and deliver all necessary documents, including an authorization form for direct debits. This authorization can be in the form attached to the Franchise Agreement as Attachment D or any other form that Canopy Lawn Care may accept.
Under this procedure, the franchisee authorizes Canopy Lawn Care to debit or credit correction entries to their designated checking or savings account for payments of fees, other amounts payable, and any interest owed. The franchisee is responsible for ensuring that funds are available for withdrawal by electronic transfer no later than the payment due date. Canopy Lawn Care is authorized to debit the franchisee's account for monthly Royalty Fees and Brand Fund Contributions if these payments are not made on time.