What is the process for Canopy Lawn Care to provide an annual accounting for the Brand Fund to franchisees?

According to Canopy Lawn Care's 2025 Franchise Disclosure Document, franchisees can request an annual accounting for the Brand Fund. This accounting will detail how the Brand Fund's proceeds were spent in the previous year and outline the planned investments for the current year.

It's important to note that Canopy Lawn Care does not have the Brand Fund audited, so audited financial statements are not available to franchisees. This means the accounting provided will be an internal report rather than a certified audit from an independent accounting firm. For the fiscal year ending September 30, 2024, Canopy Lawn Care states that 100% of the Brand Fund was used for advertising production.

Franchisees contribute 1% of their gross revenues to the Brand Fund, which Canopy Lawn Care uses to promote Canopy Lawn Care businesses and conduct marketing activities. Canopy Lawn Care retains the right to increase this contribution to a maximum of 2% of gross revenues, provided they give franchisees at least 30 days' notice. The Brand Fund is administered at Canopy Lawn Care's discretion, and they may use a professional advertising agency or media buyer to assist them.

Canopy Lawn Care can reimburse itself, its representatives, or affiliates from the Brand Fund for various expenses, including administrative costs, audits, accounting, bookkeeping, legal expenses, and taxes. Any unused funds from a calendar year will be carried over to the following year, and Canopy Lawn Care reserves the right to contribute or loan additional funds to the Brand Fund on terms they deem reasonable. While franchisees do not have direct control over the Brand Fund, they have the right to request and receive an annual accounting of its activities.