What is the 'Dwelling Limit' as it pertains to the Canopy Lawn Care franchise agreement?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
anchise Fee.** You must pay us an Initial Franchise Fee equal to $49,500, provided that your Territory is less than 45,000 single-family dwelling units ("Dwelling Limit"). The Initial Franchise Fee is payable in full when you sign a Franchise Agreement, and except as described below, is not refundable. Other than the Initial Franchise Fee, there are no other initial fees charged to you. If your Territory is larger than the Population Limit, we reserve the right to charge you an increased Initial Franchise Fee, which will be determined on a case-by-case basis.
Additional Dwelling Fee. If we permit you to purchase additional geographic areas for a specific Territory so that the Territory exceeds 45,000 single-family dwelling units, then you must pay us an additional fee in an amount equal to the single-family dwelling units in your Territory in excess of 45,000 multiplied by $0.95 (the "Additional Dwelling Fee"). We do not anticipate granting a single Territory that exceeds the Dwelling Limit of single-family dwelling units. The Additional Dwelling Fee is earned upon receipt and not refundable under any circumstances.
For example, if we permit you to purchase additional geographic areas for your Territory so that the individual Territory consists of a total of 65,000 single-family dwelling units, then you must pay us an Additional Dwelling Fee equal to $19,000, for a total Initial Franchise Fee of $68,500 (which is equal to $
Source: Item 5 — INITIAL FEES (FDD pages 17–19)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the standard initial franchise fee of $49,500 covers a territory with fewer than 45,000 single-family dwelling units; this is referred to as the "Dwelling Limit." If a prospective Canopy Lawn Care franchisee wants a territory that exceeds this limit, they may have to pay an additional fee.
Specifically, if Canopy Lawn Care permits a franchisee to purchase additional geographic areas that exceed the 45,000 single-family dwelling unit limit, the franchisee must pay an "Additional Dwelling Fee." This fee is calculated by multiplying the number of dwelling units exceeding 45,000 by $0.95 per unit.
For example, if a Canopy Lawn Care franchisee purchases a territory consisting of 65,000 single-family dwelling units, they would pay an additional dwelling fee of $19,000 (calculated as (65,000 - 45,000) * $0.95), bringing the total initial franchise fee to $68,500 (the initial fee of $49,500 plus the additional dwelling fee of $19,000). The FDD states that Canopy Lawn Care does not anticipate granting territories exceeding the Dwelling Limit. The Additional Dwelling Fee is earned upon receipt and is not refundable under any circumstances.