How is the Successor Franchise Fee determined 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 Canopy Lawn Care's 2025 Franchise Disclosure Document, the Successor Franchise Fee is determined by the following criteria. To extend the rights to operate the Lawn Care Business for two additional terms of five years each (the "Successor Term"), a franchisee must pay Canopy Lawn Care the Successor Franchise Fee.
The Successor Franchise Fee is equal to the greater of $10,000 or 20% of the then-existing Initial Franchise Fee as described in the current Franchise Agreement. This fee is due and payable to Canopy Lawn Care at the time of signing the Successor Franchise Agreement.
In addition to paying the Successor Franchise Fee, the franchisee must meet several other conditions to be eligible for a Successor Term. These include not being in breach of the agreement, being current on all payment obligations, meeting the then-current qualifications for new or renewing Canopy Lawn Care franchisees, executing a Successor Franchise Agreement and a general release of claims, upgrading the computer system and vehicles to current standards, and providing proof of current licenses, insurance, and permits. Canopy Lawn Care also reserves the right to modify the franchisee's territory at the time of renewal to conform to current standards for protected territorial areas.