Is the Additional Dwelling Fee for a Canopy Lawn Care franchise refundable?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
l Dwelling Fee.** If we permit you to purchase additional geographic areas for a specific Territory so that the Territory exceeds 45,000 single-family dwelling units, then you must pay us an additional fee in an amount equal to the single-family dwelling units in your Territory in excess of 45,000 multiplied by $0.95 (the "Additional Dwelling Fee"). We do not anticipate granting a single Territory that exceeds the Dwelling Limit of single-family dwelling units. The Additional Dwelling Fee is earned upon receipt and not refundable under any circumstances.
For example, if we permit you to purchase additional geographic areas for your Territory so that the individual Territory consists of a total of 65,000 single-family dwelling units, then you must pay us an Additional Dwelling Fee equal to $19,000, for a total Initial Franchise Fee of $68,500 (which is equal to $
Source: Item 5 — INITIAL FEES (FDD pages 17–19)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the Additional Dwelling Fee is not refundable under any circumstances. This fee is charged if Canopy Lawn Care permits a franchisee to purchase additional geographic areas for a specific territory that exceeds 45,000 single-family dwelling units. The fee is calculated by multiplying the number of dwelling units exceeding 45,000 by $0.95.
For example, if a territory consists of 65,000 single-family dwelling units, the Additional Dwelling Fee would be $19,000 (20,000 x $0.95), resulting in a total initial franchise fee of $68,500 (the initial franchise fee of $49,500 plus the additional dwelling fee of $19,000).
This non-refundable policy means that once the Additional Dwelling Fee is paid to Canopy Lawn Care, it will not be returned to the franchisee, regardless of any subsequent events or termination of the franchise agreement. Prospective franchisees should carefully consider the potential size and scope of their territory before agreeing to pay this fee, as it represents a sunk cost.