factual

What is a Canopy Lawn Care franchisee required to submit with each Royalty Fees payment?

Canopy_Lawn_Care Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 5.4 The Royalty Fees shall be payable to Franchisor on or before the 5th day of each month and shall be payable through the entire Initial Term of this Agreement and any Interim Period. If Franchisee signs a Successor Franchise Agreement, Franchisee will be required to pay the Royalty Fees set forth therein. Franchisor has the right to vary the Royalty Fees and how it is determined in any Successor Franchise Agreement Franchisee may sign. Franchisee shall pay the Royalty Fees monthly or in such other frequency as Franchisor may in its sole discretion require upon written notice to Franchisee by Franchisor. Franchisee shall not subordinate to any other obligation its obligation to pay the Royalty Fees or any other fee or charge hereunder. Each Royalty Fees payment will be accompanied by a report as set forth in Section 5.4(a).
    • (a) Each Royalty Fees payment shall be, without exception, accompanied by a statement of the previous month's Gross Revenues on a form approved and provided to Franchisee by Franchisor. Each failure to include a fully completed statement of the previous month's Gross

Revenues with the Royalty Fees payable to Franchisor when due shall constitute a material breach of this Agreement.

Source: Item 22 — CONTRACTS (FDD page 55)

What This Means (2025 FDD)

According to Canopy Lawn Care's 2025 Franchise Disclosure Document, each royalty fee payment must include a statement of the previous month's gross revenues. This statement needs to be on a form that Canopy Lawn Care approves and provides to the franchisee.

Submitting this statement along with the royalty payment is not optional. The FDD states that each royalty fee payment shall be accompanied by the gross revenue statement "without exception".

Failure to include this completed statement with the royalty fees is considered a material breach of the franchise agreement. This means that Canopy Lawn Care could take action against the franchisee for non-compliance, as detailed elsewhere in the agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.