What is the minimum amount of the Successor Franchise Fee for a Canopy Lawn Care franchise?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
r Franchise Fee (defined below) instead of the Initial Franchise Fee and the Successor Term will be no less than five years, as described above.
- (g) Franchisee pays Franchisor the successor franchise fee equal to the greater of $10,000 or 20% of the then existing Initial Franchise Fee as described in the Franchisors then existing Fr
Source: Item 22 — CONTRACTS (FDD page 55)
What This Means (2025 FDD)
According to the 2025 Canopy Lawn Care FDD, a franchisee seeking to extend their franchise rights for an additional term must pay a Successor Franchise Fee. This fee is calculated as the greater of $10,000 or 20% of the then-existing Initial Franchise Fee outlined in Canopy Lawn Care's current Franchise Agreement.
In practical terms, this means that if the Initial Franchise Fee at the time of renewal is, for example, $50,000, then 20% of that would be $10,000. Since $10,000 is equal to the stated minimum, the Successor Franchise Fee would be $10,000. However, if the Initial Franchise Fee was $60,000, then 20% would be $12,000, making the Successor Franchise Fee $12,000, as it is greater than the stated minimum.
This fee is due and payable to Canopy Lawn Care when the franchisee signs the Successor Franchise Agreement. It's important for prospective franchisees to understand that the Successor Franchise Fee can vary depending on the Initial Franchise Fee at the time of renewal, and they should factor this into their long-term financial planning. Franchisees should also be aware of the other conditions that must be met to qualify for a Successor Term, such as compliance with the franchise agreement and meeting current standards.