What is a 'Proprietary System' as defined in the Canopy Lawn Care FDD?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
We may develop proprietary or non-proprietary hardware and/or software ("Proprietary System"). Accordingly, we may require that you enter into a license agreement with us or our affiliate, which may require you to pay us commercially reasonable fees and/or enter into license agreements directly with suppliers. Additionally, if we enter into a license agreement with a supplier and sublicense the Proprietary System to you, we may charge you for all amounts we pay to the supplier based on your use, plus a reasonable amount to compensate us for the service that we or our affiliate provide.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 32–38)
What This Means (2025 FDD)
According to the 2025 Canopy Lawn Care Franchise Disclosure Document, the Proprietary System is defined as proprietary or non-proprietary hardware and/or software that Canopy Lawn Care may develop.
As a potential franchisee, this means that Canopy Lawn Care might require you to enter into a license agreement with them or one of their affiliates to use this Proprietary System. This license agreement could involve paying commercially reasonable fees to Canopy Lawn Care or entering into separate license agreements directly with the suppliers of the hardware or software.
Furthermore, if Canopy Lawn Care enters into a license agreement with a supplier and then sublicenses the Proprietary System to you, they may charge you for the amounts they pay to the supplier based on your usage, along with an additional reasonable amount to compensate them for the service they or their affiliate provides. This implies that the cost of using the Proprietary System could vary depending on your usage and the specific agreements Canopy Lawn Care has with its suppliers.