What is the maximum amount the Bookkeeping Services Fee can be increased to for Canopy Lawn Care franchisees?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
ers. Franchisee shall advise Franchisor of the location of all original documents and shall not destroy any records without the written consent of Franchisor.
- 6.2 Franchisee shall prepare on a current basis, complete and accurate records concerning all financial, marketing and other operating aspects of the Business conducted under this Agreement. Franchisee shall maintain an accounting system which accurately reflects all operational aspects of the Business including uniform reports as may be required by Franchisor. Franchisee's records shall include tax returns, daily reports, statements of Gross Revenues, profit and loss statements, sales tax information and balance sheets. Franchisee is required to exclusively use the bookkeeping services that Franchisor designates, which may be provided by Franchisor or its affiliates. If provided by Franchisor or its affiliates, Franchisee would be required to pay the then-current bookkeeping services fee ("Bookkeeping Services Fee"), which would be paid at the same time and in the same manner as the Royalty Fees. As of the date of this Agreement, the Bookkeeping Services Fee is $350 per month, but Franchisor may increase it at any
time upon notice to Franchisee to be up to $500 per month. The Bookkeeping Services Fee covers up to 5 hours of bookkeeping assistance per month; however, if Franchisee requires more than 5 hours of bookkeeping assistance per month, then Franchisor will charge Franchisee $55 per hour for additional assistance, which Franchisor may increase at any time upon notice to Franchisee to be up to $100 per hour of additional assistance. However, if Franchisee currently operates a similarly situated franchised business that uses a bookkeeping service, Franchisee may provide Franchisor with a written request to continue using such bookkeeping service.
Source: Item 22 — CONTRACTS (FDD page 55)
What This Means (2025 FDD)
According to the 2025 Canopy Lawn Care Franchise Disclosure Document, the Bookkeeping Services Fee is initially $350 per month. However, Canopy Lawn Care retains the right to increase this fee at any time, provided they give notice to the franchisee. The maximum allowable increase for the Bookkeeping Services Fee is up to $500 per month.
This fee covers up to 5 hours of bookkeeping assistance each month. If a Canopy Lawn Care franchisee requires more than 5 hours of bookkeeping assistance, they will be charged an additional $55 per hour. Canopy Lawn Care can also increase this hourly rate with notice, up to a maximum of $100 per hour for the additional assistance.
However, there is an exception: if a franchisee already uses a bookkeeping service for a similar franchised business, they can request to continue using their current service. The decision to grant this permission rests solely with Canopy Lawn Care. This exception could potentially save franchisees from incurring additional bookkeeping fees if their existing service is more cost-effective.