What is the Brand Fund used for in the Canopy Lawn Care franchise system?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
The Brand Fund may be terminated at any time by Franchisor, in its sole discretion.
In the event that the Brand Fund is terminated, any remaining balance in the Brand Fund will be expended as provided for in Section 11.6 or returned to Franchisee on a pro-rata basis.
- 11.8 Franchisee shall fully participate in all such promotional campaigns, prize contests, special offers, and other programs, national, regional, or local in nature (including the introduction of new Services, Products, new franchises or other marketing programs directed or approved by Franchisor), which are prescribed from time to time by Franchisor.
Franchisee shall be responsible for the costs of such participation.
In addition, Franchisee shall honor any coupons, gift certificates or other authorized promotional offers of Franchisor at Franchisee's sole cost unless otherwise specified in writing by Franchisor.
Franchisee will maintain an adequate supply of marketing brochures, pamphlets and promotional materials as may be required by Franchisor from time to time.
Source: Item 22 — CONTRACTS (FDD page 55)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the Brand Fund is used to promote the Canopy Lawn Care system, services, and products sold by franchisees. It will not be used to sell additional franchises. The Brand Fund collects contributions from all franchisees, and these payments are to be spent on advertising, public relations, market research, promotion, marketing of goods and services provided by Canopy Lawn Care, payments to outside vendors such as marketing agencies, and the administration of the Brand Fund itself. Administration costs can include salaries, overhead, administrative, accounting, collection, and legal costs.
The Brand Fund Contributions will be maintained by Canopy Lawn Care in a separate account. Franchisees are required to participate fully in all promotional campaigns, prize contests, special offers, and other programs, whether national, regional, or local. Franchisees are responsible for the costs of such participation and must honor any coupons, gift certificates, or other authorized promotional offers at their sole cost, unless otherwise specified in writing by Canopy Lawn Care. Franchisees must also maintain an adequate supply of marketing brochures, pamphlets, and promotional materials as required by Canopy Lawn Care.
Canopy Lawn Care may provide advertising materials and services to franchisees through the Brand Fund and may place advertising on behalf of the entire system or a particular region. They reserve the right to use the Brand Fund to place advertising in national or regional media, including broadcast, print, and internet. Canopy Lawn Care is not obligated to expend Brand Fund contributions on any particular franchisee's behalf or in proportion to their contribution. National advertising, public relations, and promotions will be started and continued by Canopy Lawn Care when they deem sufficient funds have been accumulated.
An annual unaudited financial statement of the Brand Fund, at the expense 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. The Brand Fund Contributions collected by the Brand Fund are non-refundable. Canopy Lawn Care has the sole discretion to terminate the Brand Fund at any time. If the Brand Fund is terminated, any remaining balance will be expended as provided for in Section 11.6 or returned to franchisees on a pro-rata basis.