For Canopy Lawn Care, what is the definition of 'Delivered Price'?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
The "Book Value" of a Vehicle means the sum of (i) the "Delivered Price" of the Vehicle as set forth in the applicable Schedule minus (ii) the total Depreciation Reserve paid by Lessee to Lessor with respect to such Vehicle plus (iii) all accrued and unpaid rent and/or other amounts owed by Lessee with respect to such Vehicle.
Source: Item 23 — RECEIPT (FDD pages 55–199)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the "Book Value" of a vehicle is used to determine certain payments at the end of the lease term. The Delivered Price is a component in calculating the Book Value.
The Book Value is calculated by summing three factors: (1) the Delivered Price of the vehicle as stated in the applicable Schedule, (2) subtracting the total Depreciation Reserve paid by the franchisee to Canopy Lawn Care, and (3) adding all accrued and unpaid rent and/or other amounts owed by the franchisee with respect to the vehicle.
At the end of the lease term, the franchisee may owe Canopy Lawn Care additional rent if the Book Value of the vehicle exceeds the greater of either the wholesale value of the vehicle (as determined by Canopy Lawn Care) or 20% of the Delivered Price. Conversely, Canopy Lawn Care may owe the franchisee a terminal rental adjustment if the Book Value is less than the greater of those two values. However, these calculations may be adjusted if the lease term exceeds 48 months, the mileage exceeds 15,000 miles per year on average, or the vehicle has been subject to damage or excessive wear and tear.