When is the Initial Franchise Fee considered fully earned by Canopy Lawn Care?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.1 Franchisee shall pay the sum described on Attachment A plus, if due and payable, all applicable federal, state or municipal taxes, as a non-recurring initial franchise fee ("Initial Franchise Fee") to Franchisor upon the execution of this Agreement. The Initial Franchise Fee shall be paid by means of cashier's check, money order or wire transfer. The Initial Franchise Fee shall be deemed to have been fully earned by Franchisor when paid. The Initial Franchise Fee is non-refundable once paid except as provided for in Section 5.2**.**
- 5.2 The Initial Franchise Fee will be non-refundable unless Franchisor terminates the Agreement because Franchisee failed, after diligent pursuit using all commercially reasonable efforts as determined in Franchisor's sole discretion, to obtain the applicable permits and licenses required by the state and local government applicable to its Territory within 6 months. Franchisor shall notify Franchisee in writing that it is exercising its right to terminate the Agreement pursuant to this Section 5.2, in which case 50% of the Initial Franchise Fee shall be refunded to Franchisee within 30 days of Franchisor's notice of termination to Franchisee.
Source: Item 22 — CONTRACTS (FDD page 55)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the initial franchise fee is considered fully earned by Canopy Lawn Care when it is paid by the franchisee. This fee is non-recurring and is paid upon the execution of the Franchise Agreement.
This means that once a prospective franchisee signs the agreement and pays the initial franchise fee via cashier's check, money order, or wire transfer, Canopy Lawn Care has earned the fee. The initial franchise fee is generally non-refundable, but there is an exception.
Specifically, if the franchisee diligently pursues all commercially reasonable efforts to obtain the necessary permits and licenses required by state and local governments within their territory but fails to do so within 6 months, and Canopy Lawn Care terminates the agreement, 50% of the initial franchise fee will be refunded to the franchisee within 30 days of termination notice.