What is the mileage threshold that triggers a change in the calculation of additional rent for Canopy Lawn Care?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, if (i) the Term for a Vehicle is greater than forty-eight (48) months (including any extension of the Term for such Vehicle), (ii) the mileage on a Vehicle at the end of the Term is greater than 15,000 miles per year on average (prorated on a daily basis) (i.e., if the mileage on a Vehicle with a Term of thirty-six (36) months is greater than 45,000 miles) or (iii) in the sole judgment of Lessor, a Vehicle has been subject to damage or any abnormal or excessive wear and tear, the calculations described in the two immediately preceding sentences shall be made without giving effect to clause (ii) in each such sentence.
Source: Item 23 — RECEIPT (FDD pages 55–199)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the mileage threshold that triggers a change in the calculation of additional rent is greater than 15,000 miles per year on average, prorated daily. This mileage is calculated at the end of the vehicle's term.
For a Canopy Lawn Care franchisee, this means that if the vehicle's mileage exceeds this threshold, the standard calculation for determining additional rent at the end of the lease term will not apply. Instead, the calculation will disregard the clause that typically considers 20% of the vehicle's delivered price when determining the terminal rental adjustment.
This condition is important for franchisees to monitor, as exceeding the mileage threshold can affect the final rental adjustments and potentially increase costs. Franchisees should track their vehicle usage and manage mileage to avoid triggering this clause. For example, if a vehicle has a term of 36 months, exceeding 45,000 miles would trigger the change in calculation.