What is the name given to the amounts collected for local advertising spend by Canopy Lawn Care?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Primary Fees | |||
| Royalty Fee | The greater of 8% of Gross Revenue or the required Minimum Royalty | Payable by EFT monthly on or before the fifth of each month | Payable to us. (Notes 1 and 2) If applicable, and at our discretion, the Minimum Royalty may be abated during certain months of the year due to seasonal factors in your Territory. We will determine if seasonal factors apply to your Territory in our sole discretion. Seasonal factors apply to winter weather states in which adverse weather conditions do not allow franchisees to provide lawn care services. |
| Technology Fee (Note 3) | 2% of Gross Revenues | Payable by EFT monthly on or before the 5 th of each month | The technology fee is collected monthly by us and provides the Franchisee with on-going access to, and the use of, automated lawn measurements, sales and marketing automation, scheduling and routing, billing, and CRM software. |
| Brand Fund Contribution | Currently 1% of Gross Revenues. Maximum of 2% of Gross Revenues | Payable by EFT monthly on or before the 5 th of each month | Payable to us. Any amounts you are required to contribute to the Brand Fund will be counted toward your required local marketing expenditures. |
| Grand Opening | A minimum of $50,000 during the Stub Year (defined below) and the first full calendar year of operations, plus $10,000 for each additional contiguous Territory. | As incurred | Payable to third party suppliers. We have the right, but not the obligation to collect up to the minimum required Grand Opening Marketing Spend from you, after you commence operations, and administer it on marketing and advertising investments in your Territory on your behalf. |
| Marketing Spend | |||
| (Note 4) | |||
| Minimum Local | During the second full calendar year and each subsequent calendar year, you must spend the greater of $30,000 for the first Territory plus an additional $10,000 for each additional contiguous Territory, or 10% of the prior year's Gross Revenues. | As incurred | We have the right, but not the obligation to collect these amounts (the "Minimum Local Advertising Spend") from you after you commence operations, and administer it on marketing and advertising investments in your Territory on your behalf |
Source: Item 6 — OTHER FEES (FDD pages 19–24)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the amounts collected for local advertising spend are referred to as the "Minimum Local Advertising Spend". Canopy Lawn Care has the right, but not the obligation, to collect these amounts from franchisees after they commence operations and administer it on marketing and advertising investments in their Territory on the franchisee's behalf.
During the second full calendar year and each subsequent calendar year, a Canopy Lawn Care franchisee must spend the greater of $30,000 for the first Territory plus an additional $10,000 for each additional contiguous Territory, or 10% of the prior year's Gross Revenues. This minimum spend is intended to ensure consistent local marketing efforts to build brand awareness and drive customer acquisition within the franchisee's exclusive territory.
This advertising spend is separate from the Brand Fund Contribution, which is currently 1% of Gross Revenues (with a maximum of 2%). The Brand Fund Contribution also supports marketing efforts, but on a broader, national or regional scale. Any amounts a franchisee is required to contribute to the Brand Fund will be counted toward their required local marketing expenditures. This integration provides some flexibility for franchisees in meeting their local advertising obligations.