What is the purpose of the Brand Fund for Canopy Lawn Care?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.4 Franchisor has established a production and marketing fund (the "Brand Fund") to promote Canopy® businesses in the System and conduct other promotional and marketing activities.
Franchisor currently requires that you contribute 1% of your Gross Revenues to the Brand Fund ("Brand Fund Contribution").
Franchisee must pay the Brand Fund Contribution at the same time as the Royalty Fees.
Franchisor reserves the right to increase the Brand Fund Contribution upon at least 30 days' notice to Franchisee, provided that the Brand Fund Contribution will not exceed 2% of Gross Revenues.
- 11.5 Advertising materials and services will be provided to Franchisee through the Brand Fund.
Franchisor may occasionally provide for placement of advertising on behalf of the entire System, including franchisees, or on behalf of a particular region, that may not include Franchisee, through the Brand Fund.
Franchisor reserves the right to use the Brand Fund Contribution from the Brand Fund to place advertising in national media or regional media (including broadcast, print, Internet or other media) in the future.
Franchisee acknowledges that the Brand Fund is intended to maximize the general brand recognition of the System.
Franchisor is not obligated to expend Brand Fund Contributions on Franchisee's behalf or benefit or expend Brand Fund Contributions equivalent or proportionate to Franchisee's Brand Fund Contribution on Franchisee's behalf or benefit.
- 11.6 National advertising, public relations, and promotions will be started and continued by Franchisor, when, in Franchisor's sole discretion, Franchisor deems that it has accumulated sufficient moneys for that purpose.
The Brand Fund will be used to promote the System, Services and/or Products sold by the franchisees and will not be used to sell additional franchises.
Franchisor's accounting and marketing personnel or a representative designated by Franchisor will administer the Brand Fund.
The Brand Fund will collect Brand Fund Contributions from all franchisees.
All payments to the Brand Fund must be spent on advertising, public relations, market research, promotion, marketing of goods and services provided by Franchisor, outside vendors, including but not limited to marketing agencies, and administration of the Brand Fund, including but not limited to, salaries, overhead, administrative, accounting, collection and legal costs and expenses.
The Brand Fund Contributions will be maintained by Franchisor in a separate account.
An annual un-audited financial statement of the Brand Fund, at the expense of the Brand Fund, will be available 120 days after Franchisor's fiscal year end to Franchisee for review once a year upon request.
- 11.7 The Brand Fund Contributions collected by the Brand Fund are non-refundable.
The Brand Fund may be terminated at any time by Franchisor, in its sole discretion.
In the event that the Brand Fund is terminated, any remaining balance in the Brand Fund will be expended as provided for in Section 11.6 or returned to Franchisee on a pro-rata basis.
Source: Item 22 — CONTRACTS (FDD page 55)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the Brand Fund is established to promote Canopy Lawn Care businesses within the system and to conduct promotional and marketing activities. Franchisees are currently required to contribute 1% of their gross revenues to the Brand Fund, which is paid at the same time as the royalty fees. Canopy Lawn Care retains the right to increase this contribution, but it will not exceed 2% of gross revenues with at least 30 days' notice.
Advertising materials and services will be provided to franchisees through the Brand Fund. Canopy Lawn Care may occasionally place advertising on behalf of the entire system or a particular region through the Brand Fund, which may or may not include the franchisee's specific location. The Brand Fund is intended to maximize the general brand recognition of the system, and Canopy Lawn Care is not obligated to expend Brand Fund contributions specifically on a franchisee's behalf or in proportion to their contribution.
The Brand Fund will be used to promote the system, services, and products sold by the franchisees and will not be used to sell additional franchises. It will be administered by Canopy Lawn Care's accounting and marketing personnel or a designated representative. All payments to the Brand Fund must be spent on advertising, public relations, market research, promotion, marketing of goods and services provided by the franchisor, outside vendors, and the administration of the Brand Fund, including salaries, overhead, administrative, accounting, collection, and legal costs and expenses.
The Brand Fund contributions will be maintained in a separate account, and an annual unaudited financial statement of the Brand Fund will be available to franchisees for review once a year upon request, 120 days after Canopy Lawn Care's fiscal year end. The Brand Fund contributions are non-refundable, and the Brand Fund may be terminated at any time by Canopy Lawn Care at its sole discretion. If the Brand Fund is terminated, any remaining balance will be expended as provided for or returned to franchisees on a pro-rata basis.