What is the Canopy Lawn Care franchisee's obligation regarding the use of advertising and promotional materials?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
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that would dilute, directly or indirectly, the value of the goodwill attached to the Marks, nor counsel, procure or assist anyone else to do the same.
- (f) Franchisee will use the Marks and Copyrighted Materials only in lettering, logos, print styles, forms, and formats, including but not limited to, advertising and promotional materials, invoices, signage, business checks, business cards, invoices, stationery, and promotional items such as clothing, pens, mugs, etc., which have been approved by Franchisor in accordance with this Agreement, and promptly follow instructions regarding the Marks and Copyrighted Materials as provided in the Manual and otherwise given by Franchisor from time to time.
- (g) Franchisee will use the following copyright notice at least once on each piece of advertising, promotional, or other material used in connection with the Products and Services:
- © (year of first publication). CANOPY FRANCHISE CORPORATION, All Rights Reserved.
- (h) Franchisee will use the Marks with a superscript "®", ™ or "SM", as specified by Franchisor, unless and until advised by Franchisor to use a different notice.
10.3 Franchisee acknowledges and agrees that:
- (a) If, in Franchisor's reasonable determination, the use of Marks or Copyrighted Materials in connection with the Services, Products, other products and services or the Business will infringe or potentially infringe upon the rights of any third party, weakens or impairs the rights of Franchisor or its Affiliates in the Marks or Copyrighted Materials, or it otherwise becomes advisable at any time in the sole discretion of Franchisor or its Affiliates for Franchisor to modify or discontinue use of the Marks or Copyrighted Materials, then upon notice from Franchisor, Franchisee will immediately terminate or modify such use in the manner prescribed by Franchisor. Franchisor may require Franchisee to use one or more additional or substitute trade names, trademarks, service marks or other commercial symbols or copyrighted materials. Franchisor shall reimburse Franchisee for the tangible cost of compliance with this requirement (such as the cost of printing new letterhead and business cards), but Franchisee will have no rights of damages, offset, or right to terminate this Agreement as a result thereof and Franchisor and its Affiliates shall have no liability or obligation whatsoever with respect to Franchisee's modification or discontinuance of any Marks or Copyrighted Materials.
- (b) Franchisee shall notify Franchisor within 3 days after receiving notice of any claim, demand or cause of action based upon or arising from any attempt by any other person, firm or corporation to use the Marks or any colorable imitation thereof or the Copyrighted Materials. Upon receipt of timely notice of an action, claim or demand against Franchisee relating to the Marks or Copyrighted Materials, Franchisor and its Affiliates shall have the sole right, but not the duty, to defend any such action. Franchisor and its Affiliates shall have the exclusive right to contest or bring action against any third party regarding the third party's use of any of the Marks or Copyrighted Materials and shall exercise such right in the sole discretion of Franchisor and its Affiliates. Franchisor and its Affiliates shall control all actions but not be obligated to take any action. In any defense or prosecution of any litigation relating to the Marks, Copyrighted Materials or components of the System undertaken by Franchisor and its Affiliates, Franchisee shall cooperate with Franchisor and its Affiliates, execute any and all documents, and take all actions as may be desirable or necessary in the opinion of Franchisor's counsel, to carry out such defense or prosecution. At the option of Franchisor or an Affiliate, Franchisee will join in any action, in which case Franchisor shall bear all the out-of-pocket costs of Franchisee for such participation. If
Franchisee joins in an action, then the recovery, if any, from such legal action shall be first applied to the total expenses associated therewith and then split equally between Franchisor and Franchisee.
- 10.4 All provisions of this Agreement applicable to the Marks and Copyrighted Materials apply to any and all additional trademarks, service marks, commercial symbols and copyrighted materials authorized for use by and licensed to Franchisee by Franchisor after the date of this Agreement.
- 10.5 If Franchisee during the Initial Term of the Agreement or any Interim Period, conceives or develops any improvements or additions to the System, Copyrighted Materials, website or any other documents or information pertaining to or relating to the System or the Business, or any new trade names, trade and service marks, logos, or commercial symbols related to the Business or any advertising and promotional ideas or inventions related to the Business (collectively, the "Improvements") Franchisee shall fully disclose the Improvements to Franchisor, without disclosure of the Improvements to others, and shall obtain Franchisor's written approval prior to using such Improvements. Any such Improvement may be used by Franchisor, its Affiliates and all other franchisees without any obligation to Franchisee for royalties or other fees. Franchisee shall assign and does hereby assign to Franchisor, all right, title and interest in and to the Improvements, including the right to grant sublicenses to any such Improvement. Franchisor and its Affiliates, at Franchisor's discretion, may make application for and own copyrights, patents, trade names, trademarks and service marks relating to any such Improvement and Franchisee shall cooperate with Franchisor and its Affiliates, in securing such rights. Franchisor may also consider such Improvements as the property and Trade Secrets of Franchisor and its Affiliates.
Source: Item 22 — CONTRACTS (FDD page 55)
What This Means (2025 FDD)
According to the 2025 Canopy Lawn Care Franchise Disclosure Document, franchisees face several requirements regarding advertising and promotional materials. Canopy Lawn Care requires franchisees to use the Marks and Copyrighted Materials only in approved formats for all advertising, promotional materials, invoices, signage, and promotional items. Franchisees must also include a copyright notice on all advertising and promotional materials and use the appropriate trademark symbols as directed by Canopy Lawn Care. Franchisees must immediately stop or modify the use of any Marks or Copyrighted Materials if Canopy Lawn Care determines it could infringe upon a third party's rights or weaken Canopy Lawn Care's rights.
Canopy Lawn Care must approve all advertising materials. Franchisees cannot develop advertising materials for use in the Business without Canopy Lawn Care's approval. Approved materials may be shared with other franchisees, and the franchisee is responsible for the duplication costs of any advertising or promotion material provided by Canopy Lawn Care. Franchisees are required to engage in local marketing, promotion, and advertising to inform the public about the Business. During the Stub Year and the first full calendar year of operations, franchisees must spend a minimum of $50,000 on local advertising and marketing for the first Territory, plus an additional $10,000 for each additional contiguous Territory.
During the second full calendar year and subsequent years, franchisees must spend the greater of $30,000 for the first Territory plus $10,000 for each additional contiguous Territory, or 10% of the prior year's Gross Revenues on local advertising. Brand Fund Contributions count toward the required local marketing spend. Franchisees must provide monthly accountings of their advertising and promotion expenditures to Canopy Lawn Care. Canopy Lawn Care has the right to collect and administer the minimum required marketing spend on the franchisee's behalf.
Canopy Lawn Care will provide franchisees with advertising and promotion materials used by the company and other franchisees. Franchisees cannot independently market on the Internet or use domain names similar to the Marks without prior written approval from Canopy Lawn Care. Canopy Lawn Care retains the sole right to market on the Internet and use the Marks on the Internet. Franchisees must provide content for Canopy Lawn Care's Internet marketing and sign Internet and intranet usage agreements, if any.