Can Canopy Lawn Care contribute or loan additional funds to the Brand Fund?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
We may reimburse ourselves, our authorized representatives or our affiliates from the Brand Fund for administrative costs, independent audits, reasonable accounting, bookkeeping, reporting and legal expenses, taxes and all other reasonable direct or indirect expenses that may be incurred by us or our authorized representatives and associated with the programs funded by the Brand Fund. We assume no other direct or indirect liability or obligation to collect amounts due to the Brand Fund or to maintain, direct or administer the Brand Fund. Any unused funds in any calendar year will be applied to the following year's funds, and we reserve the right to contribute or loan additional funds to the Brand Fund on any terms we deem reasonable. Since we do not have this fund audited, audited financial statements are not available to Franchisees. We will provide to you, upon request, an annual accounting for the Brand Fund that shows how the Brand Fund proceeds have been spent for the previous year and plans to invest the Brand Fund for the current year.
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, Canopy Lawn Care reserves the right to contribute or loan additional funds to the Brand Fund on any terms it deems reasonable. The Brand Fund is used to promote Canopy Lawn Care businesses and conduct marketing activities. Franchisees are currently required to contribute 1% of their gross revenues to the Brand Fund, payable at the same time as their royalty fee. Canopy Lawn Care retains the right to increase this contribution to a maximum of 2% of gross revenues with at least 30 days' notice.
Canopy Lawn Care is not legally obligated to deposit Brand Fund contributions into a separate bank account and may place them in general accounts. The company administers the Brand Fund at its discretion and may use a professional advertising agency or media buyer for assistance. Canopy Lawn Care can reimburse itself or its affiliates from the Brand Fund for various expenses, including administrative costs, audits, accounting, legal fees, taxes, and other reasonable direct or indirect expenses associated with the programs funded by the Brand Fund.
Any unused funds in a calendar year will be applied to the following year's funds. However, Canopy Lawn Care does not have the fund audited, so audited financial statements are not available to franchisees. Upon request, Canopy Lawn Care will provide an annual accounting that shows how the Brand Fund proceeds have been spent for the previous year and plans to invest the Brand Fund for the current year. This provides some transparency, although it is not a substitute for a full audit.