Is the Additional Dwelling Fee for Canopy Lawn Care refundable?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
by-case basis.
Additional 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 $49,500 + $19,000).
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 applies if Canopy Lawn Care permits a franchisee to purchase additional geographic areas, exceeding the standard 45,000 single-family dwelling units in their territory. The fee is calculated by multiplying the number of dwelling units exceeding 45,000 by $0.95.
For instance, if a franchisee's territory includes 65,000 single-family dwelling units, they would pay an Additional Dwelling Fee of $19,000 (20,000 additional units x $0.95), resulting in a total initial franchise fee of $68,500 (the standard $49,500 plus the $19,000 Additional Dwelling Fee). The FDD explicitly states that this Additional Dwelling Fee is earned upon receipt and is not refundable, regardless of the situation.
This non-refundable policy means that prospective Canopy Lawn Care franchisees need to carefully consider the size and potential of the territory they are purchasing. While expanding the territory beyond the standard limit may seem appealing, franchisees must be confident in their ability to generate sufficient revenue to justify the additional cost, as this fee will not be returned even if the business underperforms or the franchise agreement is terminated.