What is the definition of 'Required Items' for a Canopy Lawn Care franchise?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
We have standards and specifications for your Products, Services, storage facility, equipment, tools, vehicle, uniforms, inventory, supplies, forms, advertising materials, computer hardware and software, accounting systems, bookkeeping service, and/or other services and products used in, sold or provided through your Lawn Care Business ("Required Items"). We will notify you of our specifications and standards. To maintain our standards of consistent, high-quality products, customer recognition, advertising support, value and uniformity in Lawn Care Business, we may require you to purchase or lease some or all Required Items per our specifications and standards. We also reserve the right to require you to purchase
any Required Items only from our designated or approved suppliers. The term "suppliers," also includes vendors, manufacturers and distributors. We have identified a number of preferred, but not required, suppliers for other Required Items. Except as disclosed in this Item 8, neither we nor an affiliate is currently the only designated or approved supplier of any Required Items. We reserve the right, however, at any time and at our discretion, to designate ourselves or one of our affiliates as the only designated or approved supplier, or one of several designated or approved suppliers, of any additional Required Items.
You are required to use the bookkeeping service as provided by us or our affiliate for a fee. You are also required to purchase QuickBooks Online from us or our affiliate. QuickBooks Payroll is also an optional service that may be purchased from us or our affiliate.
You are also required to purchase and maintain the insurance that we describe in the Operations Manual which may be adjusted periodically. Currently, you must procure and maintain, at your own expense: (a) commercial general liability including products liability and completed operations including herbicide/pesticide applicators endorsement. Annual aggregate limit of at least $2,000,000, and per occurrence limit of at least $1,000,000. Coverage must be on an "occurrence" basis. Deductibles (if any) on a "per occurrence" basis; (b) all risk or special property insurance covering all real and personal property and equipment on replacement cost basis including business interruption and extra expense insurance; (c) commercial automobile liability coverage for any owned, leased, hired or borrowed automobile, including auto pollution, with a minimum limit of liability of $1,000,000 per occurrence. Bodily injury and property damage limits should be no less than $1,000,000 for any one occurrence; (d) uninsured and underinsured motorist protection, medical payments, and statutory no-fault coverage subject to the licensee's state minimum must also be purchased; (e) Canopy Franchise Corporation and its affiliates, and their partners, officers, subsidiaries, affiliates, shareholders, directors, regional directors, agents, and employees named as additional insured; (f) workers compensation, employer's liability of no less than $500,000 per accident, $500,000 per policy, and $500,000 per employee; and (f) contractors professional liability including pollution or voluntary property damage or expanded property damage no less than $250,000 or the state minimum (or an endorsement form with comparable wording stating endorsement covers damage to what you are working on with no workmanship exclusion). You must also procure and maintain all other insurance required by state or federal law, including unemployment insurance. The additional insured coverage must be provided on an Additional Insured Grantor of Franchise Endorsement form CG2029 (or an endorsement form with comparable wording acceptable by us). We must be given a 30-day written notice of cancellation or notice of non-renewal by all insurers providing coverage for those types of coverage required above or by statute.
We estimate that purchases and leases required by us, will equal approximately 75% to 85% of the total cost to establish your franchise. We estimate that purchases of these items will total approximately 75% to 85% of a franchisee's ongoing operating expenses.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–29)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, Required Items encompass a broad range of elements essential for operating the franchise. These include products, services, storage facilities, equipment, tools, vehicles, uniforms, inventory, supplies, forms, advertising materials, computer hardware and software, accounting systems, bookkeeping services, and other services and products used in or provided through the Lawn Care Business. Canopy Lawn Care will inform franchisees of the specific standards and specifications for these items.
To ensure consistency and quality across all Canopy Lawn Care franchises, the company may require franchisees to purchase or lease some or all of these Required Items according to their standards and specifications. Canopy Lawn Care also reserves the right to mandate that franchisees purchase these items exclusively from designated or approved suppliers. While some preferred suppliers are identified, Canopy Lawn Care retains the option to designate itself or its affiliates as the sole approved supplier for any additional Required Items at any time.
Furthermore, franchisees are obligated to use a bookkeeping service provided by Canopy Lawn Care or its affiliate, incurring a fee for this service. They must also purchase QuickBooks Online from Canopy Lawn Care or an affiliate. Additionally, franchisees must purchase and maintain specific insurance coverage as detailed in the Operations Manual, which may be adjusted periodically. This includes commercial general liability insurance with specified limits, property insurance, commercial automobile liability coverage, and worker's compensation insurance, among other requirements. These Required Items are estimated to constitute a significant portion, approximately 75% to 85%, of both the initial franchise establishment costs and the ongoing operating expenses.