How is the Technology Fee for Canopy Lawn Care paid?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
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ITEM 6 OTHER FEES
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Primary Fees | |||
| Royalty Fee | The greater of 8% of Gross Revenue or the required Minimum Royalty | Payable by EFT monthly on or before the fifth of each month | Payable to us. (Notes 1 and 2) If applicable, and at our discretion, the Minimum Royalty may be abated during certain months of the year due to seasonal factors in your Territory. We will determine if seasonal factors apply to your Territory in our sole discretion. Seasonal factors apply to winter weather states in which adverse weather conditions do not allow franchisees to provide lawn care services. |
| Technology Fee (Note 3) | 2% of Gross Revenues | Payable by EFT monthly on or before the 5 th of each month | The technology fee is collected monthly by us and provides the Franchisee with on-going access to, and the use of, automated lawn measurements, sales and marketing automation, scheduling and routing, billing, and CRM software. |
| Brand Fund Contribution | Currently 1% of Gross Revenues. Maximum of 2% of Gross Revenues | Payable by EFT monthly on or before the 5 th of each month | Payable to us. Any amounts you are required to contribute to the Brand Fund will be counted toward your required local marketing expenditures. |
| Grand Opening | A minimum of $50,000 during the Stub Year (defined below) and the first full calendar year of operations, plus $10,000 for each additional contiguous Territory. | As incurred | Payable to third party suppliers. We have the right, but not the obligation to collect up to the minimum required Grand Opening Marketing Spend from you, after you commence operations, and administer it on marketing and advertising investments in your Territory on your behalf. |
| Marketing Spend | |||
| (Note 4) | |||
| Minimum Local | During the second full calendar year and each subsequent calendar year, you must spend the greater of $30,000 for the first Territory plus an additional $10,000 for each additional contiguous Territory, or 10% of the prior year's Gross Revenues. | As incurred | We have the right, but not the obligation to collect these amounts (the "Minimum Local Advertising Spend") from you after you commence operations, and administer it on marketing and advertising investments in your Territory on your behalf. |
| Advertising Spend | |||
| Bookkeeping Services (Note 5) | The then-current Bookkeeping Services Fee. Currently, $350 per month, plus $55 per hour of additional support. | Monthly | We may increase the Bookkeeping Services Fee upon notice to you to be up to $500 per month and up to $100 per ho |
Source: Item 6 — OTHER FEES (FDD pages 19–24)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the Technology Fee is 2% of Gross Revenues. This fee is payable by EFT (electronic funds transfer) monthly on or before the 5th of each month. The Technology Fee is collected monthly by Canopy Lawn Care.
The Technology Fee provides the franchisee with ongoing access to and use of automated lawn measurements, sales and marketing automation, scheduling and routing, billing, and CRM software. This fee is uniformly imposed and payable to Canopy Lawn Care or its affiliates and is non-refundable under any circumstances once paid.
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. Franchisees must comply with Canopy Lawn Care's procedures and sign all necessary documents, including authorization for direct debits from their business bank operating account. Franchisees must ensure funds are available for withdrawal by electronic transfer no later than the payment due date. If the monthly Royalty Fees and Brand Fund Contribution are not paid timely, Canopy Lawn Care is authorized to debit the franchisee's account for these amounts.