What fee does a Canopy Lawn Care franchisee pay for a Successor Franchise Agreement?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
r Franchise Fee (defined below) instead of the Initial Franchise Fee and the Successor Term will be no less than five years, as described above.
- (g) Franchisee pays Franchisor the successor franchise fee equal to the greater of $10,000 or 20% of the then existing Initial Franchise Fee as described in the Franchisors then existing Fr
Source: Item 22 — CONTRACTS (FDD page 55)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, a franchisee must pay a Successor Franchise Fee to renew their agreement. This fee is the greater of $10,000 or 20% of the then-current Initial Franchise Fee. This fee is due when the Successor Franchise Agreement is signed.
This means that if the initial franchise fee has increased significantly since the franchisee first signed their agreement, the successor fee could be substantially higher than $10,000. For example, if the initial franchise fee is $60,000 at the time of renewal, the successor fee would be $12,000 (20% of $60,000), not $10,000.
It is important for prospective Canopy Lawn Care franchisees to consider this potential cost when evaluating the long-term financial implications of the franchise. Franchisees should also be aware that the successor franchise agreement may contain materially different terms and conditions than the original agreement.