If a Canopy Lawn Care franchisee's ownership structure changes, what is the franchisee required to do?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) If Franchisee signed this Agreement as an individual(s), Franchisee must transfer this Agreement to a wholly-owned corporation or limited liability company pursuant to Section 15.8 of this Agreement before it begins operating the Business.
Franchisee must remain a corporation or limited liability company, as applicable, in good standing under local law for the entire term of this Agreement.
Prior to beginning operations, Franchisee must: (i) deliver proof of a valid and active business checking account in its business entity name with a reputable banking institution; and (ii) obtain a valid federal employer identification number for the business entity.
Franchisee must provide corporate documents and other proof of compliance with the above requirements immediately upon request.
Source: Item 22 — CONTRACTS (FDD page 55)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, if a franchisee initially signs the agreement as an individual, they are required to transfer the agreement to a wholly-owned corporation or limited liability company before beginning operations. This transfer must be done according to Section 15.8 of the agreement.
Furthermore, the franchisee must maintain their status as a corporation or limited liability company in good standing under local law for the entire term of the agreement. This means adhering to all legal and regulatory requirements for their business structure throughout the duration of the franchise agreement with Canopy Lawn Care.
Prior to commencing operations, the franchisee must also provide proof of a valid and active business checking account in the business entity's name with a reputable banking institution. Additionally, they need to obtain a valid federal employer identification number (EIN) for the business entity. Canopy Lawn Care requires that corporate documents and other proof of compliance with these requirements be provided immediately upon request.