Is Canopy Lawn Care guaranteeing that Enterprise FM Trust will lease vehicles to franchisees?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in | Disclosure | |||
|---|---|---|---|---|---|
| Franchise Agreement | Document Item | ||||
| v. Post-termination obligations | Sections 10, 12, 14 and 17 of Franchise Agreement | Item 17 | |||
| w. Non-competition covenants | Section14of Franchise Agreement | Item 17 | |||
| x. Dispute resolution | Sections19and 20 of Franchise Agreement | Item 17 | |||
| y. Personal Guaranty (including owners/spouses) | Attachment B | Item 15 | #### Notes: |
We have made arrangements with Enterprise FM Trust ("Lessor") for Lessor to lease vehicles to franchisees in connection with their Lawn Car Business. If you want to lease a vehicle from Lessor, you will sign a Master Equity Lease Agreement (the "Lease Agreement") (See Exhibit H), and other documents required by the Lessor, which may include a personal guaranty by you or your owners. There is no assurance or guarantee that Lessor will agree to lease any vehicle(s) to you or any other franchisee. The decision whether or not to lease to you will be in Lessor's discretion, and may include you meeting credit worthiness and other conditions and qualifications. Your lease of a vehicle and the associated extension of credit is not and shall not be deemed to be an assurance that your Lawn Care Business will be successful or achieve any financial metric. The Lessor is unaffiliated with us. Monthly lease payments vary depending on the year, make and model of the vehicle. You will incur a monthly management fee of .12% of the delivered cost of the vehicle and a service charge of $495 at the end of the term. The typical monthly lease payment for a Vehicle is about $1,000 to $1,500. Interest is based on credit of lessee and cost of vehicle, and other factors as determined by Lessor. The interest rate is fixed at date of delivery for entire term. The Lease Agreement is a contract for leasing only. You will acquire no ownership of the vehicle during the term of the Lease Agreement. The Vehicle will be registered in the name of Lessor during the term of the Lease Agreement. If you are in default under the Lease Agreement, we may terminate the Franchise Agreement. In consideration for referring a prospective franchisee to Lessor, Lessor may pay for a
Source: Item 10 — FINANCING (FDD pages 30–32)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, Canopy Lawn Care does not guarantee that Enterprise FM Trust will lease vehicles to franchisees. While Canopy Lawn Care has made arrangements with Enterprise FM Trust for franchisees to lease vehicles for their Lawn Care Businesses, the decision to lease a vehicle to a franchisee is at the discretion of Enterprise FM Trust.
The FDD specifies that there is no assurance that Enterprise FM Trust will agree to lease any vehicle to any franchisee. The decision to lease depends on whether the franchisee meets the creditworthiness and other qualifications determined by Enterprise FM Trust. The lease agreement requires the franchisee to sign a Master Equity Lease Agreement and other documents required by the Lessor, which may include a personal guaranty.
The monthly lease payments can vary between $1,000 to $1,500, depending on the year, make, and model of the vehicle. In addition to the lease payments, franchisees will incur a monthly management fee of 0.12% of the delivered cost of the vehicle and a service charge of $495 at the end of the term. The interest rate is fixed at the date of delivery for the entire term and is based on the credit of the lessee, the cost of the vehicle, and other factors determined by Enterprise FM Trust. Canopy Lawn Care may receive a sponsorship at the annual conference from Enterprise FM Trust in exchange for referring prospective franchisees to them.