When are the Royalty Fees for a Canopy Lawn Care franchise payable to the Franchisor?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.4 The Royalty Fees shall be payable to Franchisor on or before the 5th day of each month and shall be payable through the entire Initial Term of this Agreement and any Interim Period. If Franchisee signs a Successor Franchise Agreement, Franchisee will be required to pay the Royalty Fees set forth therein. Franchisor has the right to vary the Royalty Fees and how it is determined in any Successor Franchise Agreement Franchisee may sign. Franchisee shall pay the Royalty Fees monthly or in such other frequency as Franchisor may in its sole discretion require upon written notice to Franchisee by Franchisor. Franchisee shall not subordinate to any other obligation its obligation to pay the Royalty Fees or any other fee or charge hereunder. Each Royalty Fees payment will be accompanied by a report as set forth in Section 5.4(a).
- (a) Each Royalty Fees payment shall be, without exception, accompanied by a statement of the previous month's Gross Revenues on a form approved and provided to Franchisee by Franchisor. Each failure to include a fully completed statement of the previous month's Gross
Source: Item 22 — CONTRACTS (FDD page 55)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the Royalty Fees are payable to the Franchisor on or before the 5th day of each month. This payment schedule applies throughout the entire Initial Term of the Franchise Agreement and any Interim Period.
If a franchisee signs a Successor Franchise Agreement, the royalty fee terms in that agreement will apply, and Canopy Lawn Care retains the right to modify the Royalty Fees and how they are determined in any Successor Franchise Agreement. The franchisee cannot prioritize other obligations over the payment of Royalty Fees or any other fees outlined in the agreement.
Each Royalty Fees payment must be accompanied by a statement of the previous month's Gross Revenues, submitted on a form approved and provided by Canopy Lawn Care. Failure to include this statement with the Royalty Fees payment constitutes a material breach of the Franchise Agreement.