When will Canopy Lawn Care resign from a franchisee's board?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event we are required to sit on your board in order for you to obtain the requisite permits, registrations or licenses, we will not acquire any ownership or voting rights on the board. However, as a condition to sitting on your board, we will require you to use a third-party professional services organization that will be responsible for handling your payroll and to assist you with your obligations to comply with various state employment law. Once you obtain your own permits, registrations, and licenses, we will resign from your board.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENT, PREDECESSORS AND AFFILIATES (FDD pages 8–14)
What This Means (2025 FDD)
According to the 2025 Canopy Lawn Care Franchise Disclosure Document, Canopy Lawn Care may be required to sit on a franchisee's board to help them obtain the necessary permits, registrations, or licenses to operate their lawn care business. However, Canopy Lawn Care will not acquire any ownership or voting rights in this scenario. As a condition of sitting on the board, Canopy Lawn Care will require the franchisee to use a third-party professional services organization to handle payroll and assist with state employment law compliance.
Once the franchisee independently obtains all the required permits, registrations, and licenses, Canopy Lawn Care will resign from the franchisee's board. This indicates that Canopy Lawn Care's presence on the board is intended to be temporary, specifically to assist the franchisee in meeting initial regulatory requirements.
For a prospective franchisee, this means that while Canopy Lawn Care may provide initial support in navigating regulatory hurdles, the franchisee is ultimately responsible for securing and maintaining their own permits and licenses. This also implies an additional cost for the franchisee, as they will be required to use a third-party professional services organization for payroll and employment law assistance while Canopy Lawn Care is on the board. Franchisees should confirm with Canopy Lawn Care which third-party professional services organization they are required to use.