What happens to the remaining balance in the Brand Fund if Canopy Lawn Care terminates it?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
The Brand Fund may be terminated at any time by Franchisor, in its sole discretion.
In the event that the Brand Fund is terminated, any remaining balance in the Brand Fund will be expended as provided for in Section 11.6 or returned to Franchisee on a pro-rata basis.
Source: Item 22 — CONTRACTS (FDD page 55)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the Brand Fund may be terminated at any time by the company at its sole discretion. If the Brand Fund is terminated, any remaining balance will either be expended as initially intended, or it will be returned to franchisees on a pro-rata basis.
This means that if Canopy Lawn Care decides to end the Brand Fund, franchisees could potentially receive a portion of the remaining funds back, proportional to their contributions. Alternatively, Canopy Lawn Care could choose to use the remaining funds for advertising, public relations, market research, promotion, or marketing of goods and services as outlined in section 11.6 of the FDD.
As a prospective franchisee, it's important to understand that Canopy Lawn Care has the authority to terminate the Brand Fund and decide how the remaining balance is distributed, offering some financial protection to franchisees in the event of termination.