What registrations must a Canopy Lawn Care franchisee obtain regarding fictitious or assumed names?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) If Franchisee signed this Agreement as an individual(s), Franchisee must transfer this Agreement to a wholly-owned corporation or limited liability company pursuant to Section 15.8 of this Agreement before it begins operating the Business.
Franchisee must remain a corporation or limited liability company, as applicable, in good standing under local law for the entire term of this Agreement.
Prior to beginning operations, Franchisee must: (i) deliver proof of a valid and active business checking account in its business entity name with a reputable banking institution; and (ii) obtain a valid federal employer identification number for the business entity.
Franchisee must provide corporate documents and other proof of compliance with the above requirements immediately upon request.
Source: Item 22 — CONTRACTS (FDD page 55)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Canopy Lawn Care requires that if a franchisee signs the agreement as an individual, they must transfer the agreement to a wholly-owned corporation or limited liability company before beginning operations. The franchisee must maintain this corporate or LLC status in good standing under local law for the entire term of the agreement.
Prior to starting operations, the franchisee must provide proof of a valid and active business checking account in the business entity's name with a reputable bank and obtain a valid federal employer identification number for the business entity. Canopy Lawn Care requires franchisees to provide corporate documents and other proof of compliance with these requirements upon request.
While the FDD specifies the need to form a corporation or LLC and obtain necessary banking and tax identification, it does not explicitly detail the requirements for registering a fictitious or assumed name (doing business as or DBA). A prospective Canopy Lawn Care franchisee should clarify with the franchisor whether registering a fictitious name is necessary if the business operates under a name different from the registered corporate or LLC name.