When is the Initial Franchise Fee for Canopy Lawn Care payable?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
NITIAL FEES
Franchise Agreement
Initial Franchise Fee. You must pay us an Initial Franchise Fee equal to $49,500, provided that your Territory is less than 45,000 single-family dwelling units ("Dwelling Limit"). The Initial Franchise Fee is payable in full when you sign a Franchise Agreement, and except as described below, is not refundable. Other than the Initial Franchise Fee, there are no other initial fees charged to you. If your Territory is larger than the Population Limit, we reserve the right to charge you an increased Initial Franchise Fee, which will be determined on a case-by-case basis.
Additional Dwelling Fee. If we permit you to purchase additional geographic areas for a specific Territory so that the Territory exceeds 45,000 single-family dwelling units, then you must pay us an additional fee in an amount equal to the single-family dwelling units in your Territory in excess of 45,000 multiplied by $0.95 (the "Additional Dwelling Fee"). We do not anticipate granting a single Territory that exceeds the Dwelling Limit of single-family dwelling units. The Additional Dwelling Fee is earned upon receipt and not refundable under any circumstances.
For example, if we permit you to purchase additional geographic areas for your Territory so that the individual Territory consists of a total of 65,000 single-family dwelling units, then you must pay us an Additional Dwelling Fee equal to $19,000, for a total Initial Franchise Fee of $68,500 (which is equal to $49,500 + $19,000).
VetFran Discount. We are a member of the International Franchise Association ("IFA"), and support and participate in IFA's VetFran Program. If you are an honorably discharged veteran who meets our qualifications for new CANOPY® franchisees, we will discount the Initial Franchise Fee by 15%. The VetFran discount may be used only once for one Territory. The VetFran discount may applied toward the purchase of only one of the franchise concepts offered by us and our Affiliates.
Multi-Territory Discount. If you license multiple contiguous Territories from us at the same time (for which you are signing separate Franchise Agreements for each Territory), the Initial Franchise Fee that you must pay under the second and each additional Franchise Agreement will be as follows:
| Initial Franchise Fee Per | Total Initial | |
|---|---|---|
| Number of Territories | Respective Territory | Franchise Fees |
| 1 | $49,500 | $49,500 |
| 2 | $42,000 | $91,500 |
| 3 | $38,000 | $129,500 |
| 4 | $36,000 | $165,500 |
| 5 | $34,000 | $199,500 |
In the event that you purchase multiple contiguous Territories at the same time, and you are in the process of obtaining funding from a financial institution for the purpose of paying the Total Initial Franchise Fees, then we may, in our discretion, permit you to pay the Total Initial Franchise Fees in installments and upon signing of the Franchise Agreements as follows: (a) payment of the full Initial Franchise Fee for
Territory 1 plus a minimum of $5,000 for each additional Territory due at the time you sign the Franchise Agreements, and (b) the remainder to be paid for the additional Territories in full upon the earlier o
Source: Item 5 — INITIAL FEES (FDD pages 17–19)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the Initial Franchise Fee is payable in full when you sign the Franchise Agreement. The standard Initial Franchise Fee is $49,500, assuming the territory covers less than 45,000 single-family dwelling units. If the territory exceeds this limit, Canopy Lawn Care reserves the right to charge an increased Initial Franchise Fee, determined on a case-by-case basis.
For franchisees purchasing multiple contiguous territories and obtaining financing, Canopy Lawn Care may allow installment payments. This involves paying the full Initial Franchise Fee for the first territory, plus a minimum of $5,000 for each additional territory upon signing the Franchise Agreements. The remaining balance for the additional territories is due either 90 days from the execution of the Franchise Agreements or upon receiving funding, whichever comes first. It is important to note that the initial payment is non-refundable, and failure to pay the remaining balance can result in termination of the Franchise Agreements.
Canopy Lawn Care also offers discounts under certain conditions. Honorably discharged veterans who meet the qualifications for new franchisees receive a 15% discount on the Initial Franchise Fee through the VetFran program. Existing Canopy Lawn Care franchisees who meet specific criteria, such as operating a Lawn Care Business for at least 18 months in full compliance with their Franchise Agreement, may be eligible for a 20% discount when purchasing an additional contiguous territory. Employees of franchisees may also be eligible for a discount of 5% for every year of employment over 2 years subject to a maximum discount of 50%.
In certain limited circumstances, Canopy Lawn Care may offer to finance up to 80% of the Initial Franchise Fee. Additionally, 50% of the Initial Franchise Fee will be refunded within 30 days after notice of termination by Canopy Lawn Care if the franchisee does not receive all applicable licenses and permits to operate their Business within 6 months after the mutual execution of the Franchise Agreement, provided that the franchisee has used all commercially reasonable efforts to secure the applicable licenses and permits.