What financial obligation does a Canopy Lawn Care franchisee have to disclose to the franchisor?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
7.7 If Franchisor must undertake any refurbishing work on Franchisee's behalf, Franchisee will pay Franchisor its costs and expenses and an administrative fee of 15% for the total aggregate amount incurred by Franchisor.
7.8 If Franchisor must temporarily operate Franchisee's Lawn Care Business due to Franchisee's death, disability, etc., Franchisee will pay a management fee equal to 10% of Gross Revenues plus costs and expenses ("Management Fee").
The Management Fee would be paid in addition to Royalty Fees, Brand Fund Contributions, and any other fees due to Franchisor.
- 7.9 If Franchisor implements a quality control program, Franchisee will pay its share of the cost and expenses of the program.
Source: Item 22 — CONTRACTS (FDD page 55)
What This Means (2025 FDD)
According to the 2025 Canopy Lawn Care FDD, a franchisee may incur several financial obligations that must be paid to the franchisor under specific circumstances. If Canopy Lawn Care must undertake any refurbishing work on the franchisee's behalf, the franchisee will pay Canopy Lawn Care its costs and expenses plus an administrative fee of 15% for the total aggregate amount incurred by Canopy Lawn Care. Additionally, if Canopy Lawn Care must temporarily operate the franchisee's Lawn Care Business due to the franchisee's death or disability, the franchisee will pay a management fee equal to 10% of Gross Revenues plus costs and expenses.
These fees are in addition to other standard franchise fees. The management fee would be paid in addition to Royalty Fees, Brand Fund Contributions, and any other fees due to Canopy Lawn Care.
Finally, if Canopy Lawn Care implements a quality control program, the franchisee will pay its share of the cost and expenses of the program. These obligations highlight the importance of understanding all potential costs associated with operating a Canopy Lawn Care franchise and the circumstances under which these costs may be incurred.