What other costs might a Canopy Lawn Care franchisee incur if the Note is accelerated?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event payment of the Note is not made under its terms, we may either accept a late payment, together with a late charge equal to 10% of the late payment, or declare the entire balance of the Note immediately due. If the balance of the Note is accelerated, we must give written notice and, if the balance is not paid within 10 days after notice is given, you must pay us interest at the maximum legal rate (not to exceed 18%) and any attorneys' fees and other costs we incur in collecting the monies owed. We also have the right to terminate the Franchise Agreement if we accelerate the Note and the Note is not paid within the 10 days after acceleration. We have not in the past and do not currently intend to sell, assign or discount to any third party the Note or any other financing document you sign.
Source: Item 10 — FINANCING (FDD pages 30–32)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, if a franchisee's Promissory Note is accelerated due to non-payment, they may incur additional costs. Specifically, Canopy Lawn Care may demand immediate payment of the entire outstanding balance.
In addition to the accelerated balance, Canopy Lawn Care can charge interest at the maximum legal rate, which cannot exceed 18%. The franchisee is also responsible for covering any attorneys' fees and other costs that Canopy Lawn Care incurs while attempting to collect the owed funds.
Furthermore, the FDD states that Canopy Lawn Care has the right to terminate the Franchise Agreement if the franchisee fails to pay the accelerated Note balance within 10 days after receiving notice. This could lead to further financial repercussions and loss of the franchise. It is important to note that Canopy Lawn Care states they do not intend to sell, assign, or discount the Note to any third party.