When must the Brand Fund Contribution be paid by Canopy Lawn Care franchisees?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
ing Spend and Minimum Local Advertising Spend.
We have established a production and marketing fund (the "Brand Fund") to promote CANOPY® businesses in the System and conduct other promotional and marketing activities. We currently require that you contribute 1% of your Gross Revenues to the Brand Fund ("Brand Fund Contribution"). You must pay the Brand Fund Contribution at the same time that you pay your Royalty fee. We reserve the right to increase the Brand Fund Contribution upon at least 30 days' notice to you, provided that the Brand Fund Contribution will not exceed 2% of Gross Revenues.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 32–38)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, franchisees are required to contribute 1% of their Gross Revenues to the Brand Fund. This contribution, referred to as the Brand Fund Contribution, must be paid at the same time that the franchisee pays their Royalty fee.
Canopy Lawn Care retains the right to increase the Brand Fund Contribution, but it will not exceed 2% of Gross Revenues. Franchisees will receive at least 30 days' notice before any increase is implemented. The Brand Fund is used to promote Canopy Lawn Care businesses and for marketing activities.
It's important to note that Canopy Lawn Care is not legally obligated to deposit the Brand Fund Contribution into a separate bank account. The funds may be placed in their general accounts or separate accounts and will be administered at their discretion. While Canopy Lawn Care does not have the fund audited, they will provide an annual accounting of the Brand Fund upon request, detailing how the proceeds were spent in the previous year and planned investments for the current year.
Brand Fund Contributions will count towards the Grand Opening Marketing Spend and Minimum Local Advertising Spend. This means that the money spent on the Brand Fund can also satisfy the franchisee's local advertising requirements, providing a dual benefit.