What is the exception for submitting late reports for Canopy Lawn Care franchisees?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
r reserves the right to require, in its sole discretion, that Franchisee remit the Royalty Fees or any other sums due to Franchisor under this Agreement weekly.
- 6.12 If Franchisee fails to report or record a sale using the designated systems, then in addition to all other remedies which may be available to Franchisor, Franchisee must pay Franchisor a unreported or unrecorded sale fine equal to 2% of the unrecorded or unreported sale if Franchisee reports the unrecorded or unreported sale within 30 days of billing the customer (plus the regular Royalty Fee due on
the sale), and/or 100% of the unrecorded or unreported s
Source: Item 22 — CONTRACTS (FDD page 55)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, if a franchisee fails to report or record a sale using the designated systems, they may be subject to a fine. However, there is an exception: if the franchisee reports the unrecorded or unreported sale within 30 days of billing the customer, the fine is reduced to 2% of the unrecorded or unreported sale, in addition to the regular Royalty Fee due on the sale.
If the franchisee does not report the unrecorded or unreported sale within 30 days of billing the customer, the fine increases significantly to 100% of the unrecorded or unreported sale, plus any audit expenses. This policy incentivizes franchisees to promptly correct any reporting errors.
This clause highlights the importance of accurate and timely sales reporting within the Canopy Lawn Care franchise system. Franchisees should ensure they are familiar with the designated reporting systems and maintain diligent records to avoid incurring substantial fines. The 30-day window provides a grace period for self-correction, but failing to meet this deadline can result in a much higher penalty.