For Canopy Lawn Care, how many days after the due date is a payment considered late?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Any payment is late if not received by holder within 10 days after it is due. If a payment is late, holder may, in its sole discretion elect to;
- A. Declare the entire unpaid principal and interest balances immediately due and payable; or
- B. Accept the late payment along with a late charge in the amount of 10% of the amount of the late payment. The late charge will be for the purpose of compensating holder for additional expenses which it is recognized that holder will incur as a result of the late payment.
Source: Item 23 — RECEIPT (FDD pages 55–199)
What This Means (2025 FDD)
According to the 2025 Canopy Lawn Care FDD, a payment is considered late if it is not received within 10 days after the due date. This means that if a franchisee's payment is due on the 1st of the month, it must be received by the 11th to avoid being considered late.
If a payment is late, Canopy Lawn Care has the option to declare the entire unpaid balance immediately due or accept the late payment with a charge of 10% of the late payment amount. This late charge is intended to cover the additional expenses Canopy Lawn Care incurs due to the late payment.
All payments received are first applied to any late charges, then to outstanding interest, and finally to the outstanding principal balance. This prioritization means that late payments can quickly accumulate additional costs for the franchisee. Canopy Lawn Care also provides a 10-day written notice if they elect to demand full payment of the unpaid balance.