Does Canopy Lawn Care have the exclusive right to determine the boundaries of a franchisee's territory?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the exclusive right to determine the boundaries of your Territory in our sole discretion. We reserve the right to change, modify, or delete the Dwelling Limit in our sole discretion. We will use our business judgment to determine whether the Dwelling Limit makes good business sense for us and all of our franchisees. Enforcing the Dwelling Limit may not be practical when considering limitations on geography, housing availability, natural physical boundaries and population and demographic shifts. In the event that utilizing a Dwelling Limit does not make good business sense as determined by us we may delete the Dwelling Limit in our sole discretion. In addition to all other rights and remedies available to Franchisor, Franchisor may reduce the size of the Territory and/or eliminate the protections granted to Franchisee in the Territory.
Source: Item 12 — TERRITORY (FDD pages 38–41)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, Canopy Lawn Care retains the exclusive right to determine the boundaries of a franchisee's territory. The territory is determined by demographics and other characteristics, including population density, home values, average income, natural boundaries, competition, and the amount and size of urban, suburban, and rural areas.
The Franchise Agreement grants a territory to operate the Lawn Care Business. Canopy Lawn Care grants only one license to a franchisee for up to a Dwelling Limit, which equals 45,000 single family dwelling units in the designated geographical location. If the territory exceeds this limit, the franchisee must pay an Additional Dwelling Fee of $0.95 per single family dwelling unit exceeding the limit. Canopy Lawn Care uses U.S. Census Data or other statistical sources to determine single family dwelling units.
Canopy Lawn Care also reserves the right to change, modify, or delete the Dwelling Limit in its sole discretion, based on business judgment. The franchisor may reduce the size of the territory or eliminate protections granted to the franchisee. A franchisee may not relocate their territory or establish additional Lawn Care Businesses without Canopy Lawn Care's prior written consent, which may be withheld.