Does Canopy Lawn Care provide audited financial statements for the Brand Fund to franchisees?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Since we do not have this fund audited, audited financial statements are not available to Franchisees. We will provide to you, upon request, an annual accounting for the Brand Fund that shows how the Brand Fund proceeds have been spent for the previous year and plans to invest the Brand Fund for the current year.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 32–38)
What This Means (2025 FDD)
According to the 2025 FDD, Canopy Lawn Care does not provide audited financial statements for its Brand Fund. While Canopy Lawn Care does not have the Brand Fund audited, they will provide franchisees with an annual accounting of the Brand Fund upon request. This annual accounting will detail how the Brand Fund's proceeds were spent in the previous year and the planned investments for the current year.
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.
While the Brand Fund contributions may be placed in Canopy Lawn Care's general accounts, Canopy Lawn Care may reimburse itself or its affiliates from the Brand Fund for various expenses, including administrative costs, independent audits, and accounting expenses. Any unused funds from the Brand Fund in a calendar year will be applied to the following year's funds, and Canopy Lawn Care reserves the right to contribute or loan additional funds to the Brand Fund.