If the Canopy Lawn Care franchisor 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 Canopy Lawn Care arranges the buyer for a franchise transfer, the franchisee must pay a transfer fee.
The transfer fee is the greater of $15,000 or 30% of the then-current initial franchise fee. For example, if the initial franchise fee at the time of transfer is $50,000, then 30% of that fee would be $15,000. In this case, the transfer fee would be $15,000 because it is equal to the minimum fee. However, if the initial franchise fee was $60,000, then 30% would be $18,000, and the franchisee would pay $18,000 as the transfer fee.
It is important to note that this transfer fee is in addition to other conditions that must be met for the transfer to be approved. These conditions include the franchisee being in full compliance with the agreement, the transferee executing the current franchise agreement, and the franchisee executing a general release of Canopy Lawn Care.