When are Royalty Fees payable to Canopy Lawn Care?
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, Royalty Fees are payable on or before the 5th day of each month throughout the Initial Term of the Franchise Agreement and any Interim Period. If a franchisee signs a Successor Franchise Agreement, the royalty fee terms outlined in that agreement will apply. Canopy Lawn Care retains the right to modify the Royalty Fees and their calculation method in any Successor Franchise Agreement.
The franchisee must submit Royalty Fees monthly or at another frequency determined by Canopy Lawn Care, who will provide written notice of any changes. The obligation to pay Royalty Fees cannot be subordinated to any other financial obligation of the franchisee. Each Royalty Fee payment must include a statement of the previous month's Gross Revenues on a form approved by Canopy Lawn Care.
Failure to include a completed Gross Revenues statement with the Royalty Fees is a material breach of the Franchise Agreement. This requirement ensures that Canopy Lawn Care receives timely and accurate financial information to verify the Royalty Fee payments. The consistent and timely payment of Royalty Fees, along with the required reports, is critical for maintaining a good standing with Canopy Lawn Care and avoiding potential penalties or termination of the agreement.