What is the deadline for a Canopy Lawn Care franchisee to pay the early termination fee?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Early Termination Fee | An amount equal to 24 times the average monthly Royalty fees payable to Franchisor over (i) the last 12 months of the Franchised Business's active operations, or (ii) the entire period the Franchised Business has been open for business, whichever is the shorter period. | Within 30 days of the early termination date | We may require you to pay us an early termination fee in the event the Franchise Agreement is terminated prior to its natural expiration date. |
Source: Item 6 — OTHER FEES (FDD pages 19–24)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, if a franchisee's agreement is terminated early, Canopy Lawn Care may require the franchisee to pay an early termination fee. This fee is calculated as 24 times the average monthly royalty fees. The average monthly royalty fees are based on either the last 12 months of the franchise's active operation or the entire period the franchise has been open, whichever is shorter.
The deadline for paying this early termination fee is within 30 days of the early termination date. This means a franchisee must have the funds available and remit payment to Canopy Lawn Care within that 30-day window to avoid further penalties or legal action.
It is important for prospective Canopy Lawn Care franchisees to understand this potential cost, as early termination can arise from various circumstances, including breach of contract or business failure. Franchisees should factor this potential expense into their financial planning and be aware of the conditions under which early termination fees may apply.