Under what conditions can Canopy Lawn Care terminate the Brand Fund?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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, which is used to promote Canopy Lawn Care businesses, can be terminated at any time at the sole discretion of the Franchisor.
If Canopy Lawn Care chooses to terminate the Brand Fund, any remaining balance will either be spent as previously outlined in Section 11.6, which includes advertising, public relations, market research, and marketing of goods and services, or it will be returned to the franchisees on a pro-rata basis. This means that franchisees would receive a portion of the remaining funds based on their contribution to the fund.
This clause gives Canopy Lawn Care significant control over the Brand Fund and its potential termination. While the remaining balance must be used for approved purposes or returned to franchisees, the decision to terminate the fund rests solely with Canopy Lawn Care. Prospective franchisees should consider this when evaluating the potential benefits and risks associated with the Brand Fund.