What form of payment does Canopy Lawn Care require for initial fees, generally?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as indicated below, we require that the initial fees described in Item 5 be paid to us in cash at the time of signing the Franchise Agreement.
Under limited circumstances we may allow for a partial deferral or make optional financing available to qualifying existing franchisees. In those situations, we may finance up to 80% of your franchise fee for up to 24 months, provided you sign the Promissory Note ("Note") attached as Exhibit I at the time you sign your Franchise Agreement. The effective annual interest rate will be 4 percentage points above the prime interest rate on the effective date of the Franchise Agreement.
There is no prepayment penalty and the rule of 78 does not apply (the rule of 78 is a method of computing interest which requires the interest originally calculated to still be paid even if prepaid). No security interest is required and no person other than you and, if you are an entity, those individuals who are required to sign the form Guarantee and Assumption of Obligations attached as Attachment B to the Franchise Agreement, must sign the Note.
If we offer and you accept financing from us, and you sign the Note, you will be required to waive and excuse presentment for acceptance and payment, notice of dishonor, and protest of dishonor. Other than as mentioned in the previous sentence, neither the Note, nor any other financing document you sign will contain any waiver of defense or similar provision. In the event payment of the Note is not made under its terms, we may either accept a late payment, together with a late charge equal to 10% of the late payment, or declare the entire balance of the Note immediately due. If the balance of the Note is accelerated, we must give written notice and, if the balance is not paid within 10 days after notice is given, you must pay us interest at the maximum legal rate (not to exceed 18%) and any attorneys' fees and other costs we incur in collecting the monies owed. We also have the right to terminate the Franchise Agreement if we accelerate the Note and the Note is not paid within the 10 days after acceleration. We have not in the past and do not currently intend to sell, assign or discount to any third party the Note or any other financing document you sign.
We will comply with all appropriate laws governing any direct financing we offer to you including, if applicable, the California Finance Lenders Law.
Source: Item 10 — FINANCING (FDD pages 30–32)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the company typically requires initial fees to be paid in cash when signing the Franchise Agreement. However, under certain limited circumstances, Canopy Lawn Care may offer a partial deferral or optional financing to existing franchisees who qualify.
If financing is offered, Canopy Lawn Care may finance up to 80% of the franchise fee for a period of up to 24 months. In this case, the franchisee must sign a Promissory Note. The interest rate will be 4 percentage points above the prime interest rate on the date the Franchise Agreement becomes effective.
There is no penalty for prepayment, and the Rule of 78 does not apply. No security interest is required, and only the franchisee and any individuals required to sign the Guarantee and Assumption of Obligations must sign the Promissory Note. If the franchisee accepts financing from Canopy Lawn Care, they will be required to waive and excuse presentment for acceptance and payment, notice of dishonor, and protest of dishonor. If a payment is late, Canopy Lawn Care may accept the late payment with a charge of 10% of the late payment, or declare the entire balance of the Promissory Note immediately due. If the balance is accelerated, Canopy Lawn Care must provide written notice, and if the balance is not paid within 10 days, the franchisee must pay interest at the maximum legal rate (not to exceed 18%) and any attorneys' fees and other costs incurred in collecting the monies owed. Canopy Lawn Care also has the right to terminate the Franchise Agreement if the Promissory Note is not paid within 10 days after acceleration.