If the Canopy Lawn Care franchisee arranges the buyer, what is the transfer fee?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
nd promotion than are provided hereunder, and such other documents then customarily used by Franchisor to grant franchises), and all other documents as may be reasonably requested by Franchisor;
- (c) Franchisee's paying to Franchisor a transfer fee equal to: (i) the greater of $10,000 o
Source: Item 22 — CONTRACTS (FDD page 55)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the transfer fee depends on who arranges the buyer. If the franchisee arranges the buyer for their Canopy Lawn Care business, they must pay a transfer fee to Canopy Lawn Care.
The transfer fee is the greater of $10,000 or 20% of the then-current initial franchise fee. This means that a franchisee selling their business needs to be prepared to pay this fee to Canopy Lawn Care before the transfer can be completed.
It's important to note that the initial franchise fee can change over time, so the 20% calculation will be based on the current fee at the time of the transfer, not necessarily the fee that the franchisee originally paid. This transfer is contingent upon the franchisee being in full compliance with the agreement and paying all outstanding debts to Canopy Lawn Care.