How is the Royalty Fee for Canopy Lawn Care paid?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as noted above, these fees are uniformly imposed and payable to us or our affiliates. All fees paid to us or our affiliates are non-refundable under any circumstances once paid. Fees paid to vendors or other suppliers may or may not be refundable depending on your vendors and suppliers. We reserve the right to require you to pay fees and other amounts due to us via electronic funds transfer or other similar means, as described in the Franchise Agreement. If payments are required in this method, you must comply with our procedures and perform all acts and deliver and sign all documents, including authorization (in the form attached to the Franchise Agreement as Attachment D or any other form that we may accept) for direct debits from your business bank operating account, which may be necessary to assist in or accomplish payment by this method. Under this procedure you shall authorize us to initiate debit entries and/or credit correction entries to a designated checking or savings account for payments of fees and other amounts payable to us and any interest that may be owing. You shall make the funds available to us for withdrawal by electronic transfer no later than the payment due date. If you have not timely paid the monthly Royalty Fees and Brand Fund Contribution to us for any month, then we shall be authorized, at our option, to debit your account for the monthly Royalty Fees and the Brand Fund Contribution.
Source: Item 6 — OTHER FEES (FDD pages 19–24)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, franchisees must pay a royalty fee, though the document does not explicitly state how it is paid. However, it does state that Canopy Lawn Care reserves the right to require franchisees to pay fees and other amounts due via electronic funds transfer or other similar means, as described in the Franchise Agreement.
If electronic payments are required, the franchisee must comply with Canopy Lawn Care's procedures, including authorizing direct debits from their business bank operating account. This authorization allows Canopy Lawn Care to initiate debit entries for payments of fees and other amounts payable, including any interest owed. The franchisee is responsible for ensuring funds are available for withdrawal by electronic transfer no later than the payment due date.
Furthermore, if a franchisee fails to timely pay the monthly Royalty Fees and Brand Fund Contribution, Canopy Lawn Care is authorized, at its option, to debit the franchisee's account for these amounts. This highlights the importance of maintaining sufficient funds and adhering to the payment schedule to avoid automatic debits from the franchisee's account.