How much notice does Canopy Lawn Care give before accelerating the balance of the Note?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event payment of the Note is not made under its terms, we may either accept a late payment, together with a late charge equal to 10% of the late payment, or declare the entire balance of the Note immediately due. If the balance of the Note is accelerated, we must give written notice and, if the balance is not paid within 10 days after notice is given, you must pay us interest at the maximum legal rate (not to exceed 18%) and any attorneys' fees and other costs we incur in collecting the monies owed. We also have the right to terminate the Franchise Agreement if we accelerate the Note and the Note is not paid within the 10 days after acceleration. We have not in the past and do not currently intend to sell, assign or discount to any third party the Note or any other financing document you sign.
Source: Item 10 — FINANCING (FDD pages 30–32)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, if a franchisee fails to make a payment on their Promissory Note, Canopy Lawn Care has the right to accelerate the balance of the Note, meaning they can demand immediate payment of the entire outstanding amount.
In the event Canopy Lawn Care accelerates the balance of the Note, they must provide written notice to the franchisee. The franchisee then has 10 days from the date of the notice to pay the full balance. If the franchisee does not pay within this 10-day period, Canopy Lawn Care can charge interest at the maximum legal rate, which cannot exceed 18%. Additionally, the franchisee will be responsible for covering any attorneys' fees and other costs Canopy Lawn Care incurs while trying to collect the owed money.
Furthermore, Canopy Lawn Care has the right to terminate the Franchise Agreement if the franchisee fails to pay the accelerated Note balance within the 10-day period. However, Canopy Lawn Care states that they have not in the past and do not currently intend to sell, assign, or discount the Note to any third party.