Can the Bookkeeping Services Fee for a Canopy Lawn Care franchisee be increased by the franchisor?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
lty Fees. As of the date of this Agreement, the Bookkeeping Services Fee is $350 per month, but Franchisor may increase it at any
time upon notice to Franchisee to be up to $500 per month. The Bookkeeping Services Fee covers up to 5 hours of bookkeeping assistance per month; however, if Franchisee requires more than 5 hours of bookkeeping assistance per month, then Franchisor will charge Franchisee $55 per hour for additional assistance, which Franchisor may increase at any time upon notice to Franchisee to be up to $100 per hour of additional assistance. However, if Franchisee currently operates a similarly situated franchised business that uses a bookkeeping service, Franchisee may provide Franchisor with a written request to continue using such bookkeeping service. Franchisee may be granted, in Franchisor's sole discretion, express permission to use Franchisee's current bookkeeping service for its Business.
- 6.3 Franchisee shall furnish to Franchisor such reports as Franchisor may require from time to time. Franchisee grants Franchisor the right to disclose all financial data submitted to Franchisor. Without limiting the generality of the foregoing, Franchisee shall furnish to Franchisor in the form Franchisor requires periodically (which will include a chart of accounts prescribed by Franchisor) and together with such detail and breakdown and copies of supporting records as Franchisor may from time to time require:
- (a) within ten (10) days after the end of each month, beginning with January 1st, a balance sheet and profit and loss statement for the Business for the preceding month;
- (b) within thirty (30) days after the end of each fiscal year of the Business, financial statements for the Business, including a balance sheet, profit and loss statement, a change in cash position statement and a statement of retained earnings for such period; and
- (c) within thirty (30) days of April 15th of each year, a t
Source: Item 22 — CONTRACTS (FDD page 55)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the franchisor has the right to increase the Bookkeeping Services Fee. The standard Bookkeeping Services Fee covers up to 5 hours of assistance per month. The franchisor may increase the fees for additional assistance at any time with notice to the franchisee.
Currently, the Bookkeeping Services Fee is capped at $500 per month for the initial 5 hours of assistance. If a Canopy Lawn Care franchisee requires more than 5 hours of bookkeeping assistance, the franchisor will charge $55 per hour for the additional time. However, the franchisor can increase this hourly rate up to $100 per hour with notice.
However, the franchisee may be able to use their own bookkeeping service if they already operate a similarly situated franchised business with an existing bookkeeping service. To do so, the franchisee must submit a written request to Canopy Lawn Care, and the franchisor may, at its sole discretion, grant permission for the franchisee to continue using their current bookkeeping service for their Canopy Lawn Care business.
All Canopy Lawn Care franchisees must furnish reports to the franchisor as requested, including monthly balance sheets and profit and loss statements, annual financial statements, and copies of tax returns. Franchisees also grant Canopy Lawn Care the right to disclose all financial data submitted to them.