When must the Canopy Lawn Care franchisee pay the Brand Fund Contribution?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor currently requires that you contribute 1% of your Gross Revenues to the Brand Fund ("Brand Fund Contribution").
Franchisee must pay the Brand Fund Contribution at the same time as the Royalty Fees.
Franchisor reserves the right to increase the Brand Fund Contribution upon at least 30 days' notice to Franchisee, provided that the Brand Fund Contribution will not exceed 2% of Gross Revenues.
Source: Item 22 — CONTRACTS (FDD page 55)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, franchisees are required to contribute to the Brand Fund, which is used to promote Canopy Lawn Care businesses and conduct marketing activities. Currently, this contribution is 1% of the franchisee's Gross Revenues.
The Brand Fund Contribution must be paid at the same time as the Royalty Fees. It's important to note that Canopy Lawn Care retains the right to increase this contribution, but it will not exceed 2% of Gross Revenues. Franchisees will receive at least 30 days' notice before any increase is implemented.
Failure to pay the Brand Fund Contribution when due constitutes a material breach of the Franchise Agreement. This could potentially lead to the termination of the agreement. Prospective franchisees should factor this ongoing expense into their financial projections and ensure they understand the payment schedule for both Royalty Fees and Brand Fund Contributions.