Can the holder of the Canopy Lawn Care promissory note change the method of payment?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
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- All payments shall be made by preauthorized Automated Clearinghouse transactions ("ACH") or by such other reasonable method as holder directs at a bank specified by maker in writing to the holder as specified above.
Source: Item 23 — RECEIPT (FDD pages 55–199)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the holder of the promissory note has the ability to direct the method of payment. The standard payment method is preauthorized Automated Clearinghouse (ACH) transactions. However, the holder can specify another reasonable payment method.
This means that as a Canopy Lawn Care franchisee, you should be prepared to make payments via ACH unless otherwise directed. It is important to maintain open communication with the noteholder to stay informed of any changes to the payment method. Failure to comply with the directed payment method could potentially lead to late payment penalties or other consequences as outlined in the promissory note.
It is also important to note that if a payment is not received within 10 days after it is due, the holder has the option to declare the entire unpaid principal and interest immediately due or accept the late payment with a charge of 10% of the late payment amount. This highlights the importance of adhering to the specified payment method and ensuring timely payments to avoid penalties or default scenarios.