Does Canopy Lawn Care have arrangements with Enterprise FM Trust for vehicle leasing?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in | Disclosure | |||
|---|---|---|---|---|---|
| Franchise Agreement | Document Item | ||||
| v. Post-termination obligations | Sections 10, 12, 14 and 17 of Franchise Agreement | Item 17 | |||
| w. Non-competition covenants | Section14of Franchise Agreement | Item 17 | |||
| x. Dispute resolution | Sections19and 20 of Franchise Agreement | Item 17 | |||
| y. Personal Guaranty (including owners/spouses) | Attachment B | Item 15 | #### Notes: |
We have made arrangements with Enterprise FM Trust ("Lessor") for Lessor to lease vehicles to franchisees in connection with their Lawn Car Business. If you want to lease a vehicle from Lessor, you will sign a Master Equity Lease Agreement (the "Lease Agreement") (See Exhibit H), and other documents required by the Lessor, which may include a personal guaranty by you or your owners. There is no assurance or guarantee that Lessor will agree to lease any vehicle(s) to you or any other franchisee. The decision whether or not to lease to you will be in Lessor's discretion, and may include you meeting credit worthiness and other conditions and qualifications. Your lease of a vehicle and the associated extension of credit is not and shall not be deemed to be an assurance that your Lawn Care Business will be successful or achieve any financial metric. The Lessor is unaffiliated with us. Monthly lease payments vary depending on the year, make and model of the vehicle. You will incur a monthly management fee of .12% of the delivered cost of the vehicle and a service charge of $495 at the end of the term. The typical monthly lease payment for a Vehicle is about $1,000 to $1,500. Interest is based on credit of lessee and cost of vehicle, and other factors as determined by Lessor. The interest rate is fixed at date of delivery for entire term. The Lease Agreement is a contract for leasing only. You will acquire no ownership of the vehicle during the term of the Lease Agreement. The Vehicle will be registered in the name of Lessor during the term of the Lease Agreement. If you are in default under the Lease Agreement, we may terminate the Franchise Agreement. In consideration for referring a prospective franchisee to Lessor, Lessor may pay for a
Source: Item 10 — FINANCING (FDD pages 30–32)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, Canopy Lawn Care has arrangements with Enterprise FM Trust for vehicle leasing. If a franchisee wants to lease a vehicle, they will sign a Master Equity Lease Agreement and other documents required by the Lessor, which may include a personal guaranty. However, there is no guarantee that Enterprise FM Trust will agree to lease any vehicle to the franchisee, as the decision is at their discretion and may include credit worthiness and other conditions.
The monthly lease payments will vary depending on the year, make, and model of the vehicle. In addition to the lease payments, the franchisee will incur a monthly management fee of 0.12% of the delivered cost of the vehicle and a service charge of $495 at the end of the term. The typical monthly lease payment for a vehicle is about $1,000 to $1,500. The interest rate is fixed at the date of delivery for the entire term and is based on the credit of the lessee, the cost of the vehicle, and other factors determined by Enterprise FM Trust.
The Lease Agreement is for leasing only, and the franchisee will not acquire ownership of the vehicle during the term. The vehicle will be registered in the name of Enterprise FM Trust. If the franchisee defaults on the Lease Agreement, Canopy Lawn Care may terminate the Franchise Agreement. In consideration for referring a prospective franchisee to Enterprise FM Trust, Enterprise FM Trust may pay for a sponsorship at the annual Canopy Lawn Care conference. Enterprise FM Trust is unaffiliated with Canopy Lawn Care.