How are Canopy Lawn Care territories awarded?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Territories are awarded on a first-come, first-served basis to qualified applicants that meet our requirements to operate a Lawn Care Business. Other than as described in this paragraph, you may not solicit or accept orders from customers located outside your Territory or use other channels of distribution, including the Internet, catalog sales, telemarketing or other direct marketing.
You will be granted a Territory in which to operate the Lawn Care Business under the Franchise Agreement. Your Territory is based on demographics and other characteristics including population density, home values, average income and other characteristics of the surrounding area, natural boundaries, extent of competition and the amount and size of urban, suburban and rural areas. We will grant only one license to a franchisee for up to the Dwelling Limit, which equals 45,000 single family dwelling units in the designated geographical location. If you are granted a Territory in excess of the Dwelling Limit, then you will need to pay us an Additional Dwelling Fee, which equals $0.95 per single family dwelling unit in the Territory in excess of the Dwelling Limit. We will use the most recent population information available in the U.S. Census Data, or other population statistical sources of our choosing to determine single family dwelling units. Except as otherwise disclosed below, you will maintain rights to your Territory during the
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
We or our affiliates have the right to sell and enter into agreements with National Accounts, both inside and outside the Territory. A "National Account" means those customers or accounts we designate in our sole and absolute discretion, regardless of their geographic location, as desiring central billing accounts, or that have at least 20 locations, and such locations are located in more than one franchised or companyowned territory or market. You must participate in any national accounts program (the "National Accounts Program") we designate and comply with the terms of the National Accounts Program as described in the Operations Manual or as we otherwise describe in writing. You understand that we will establish the rules under which you will participate, and be compensated for participation, in the National Accounts Program and that we may terminate, modify or replace the National Accounts Program at any time. You must pay us any then-current fees associated with the National Accounts Program.
Source: Item 12 — TERRITORY (FDD pages 38–41)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, territories are awarded on a first-come, first-served basis to qualified applicants who meet the requirements to operate a lawn care business. However, Canopy Lawn Care does not grant exclusive territories to its franchisees. This means a franchisee may face competition from other franchisees, company-owned outlets, other distribution channels, or competitive brands controlled by Canopy Lawn Care.
The territory granted to a Canopy Lawn Care franchisee is based on demographics and other characteristics such as population density, home values, average income, natural boundaries, the extent of competition, and the amount and size of urban, suburban, and rural areas. Canopy Lawn Care grants only one license to a franchisee for up to a "Dwelling Limit," which is 45,000 single-family dwelling units in the designated geographical location. If a territory exceeds this limit, the franchisee must pay an Additional Dwelling Fee of $0.95 per single-family dwelling unit exceeding the limit. Canopy Lawn Care uses the most recent U.S. Census Data or other statistical sources to determine the number of single-family dwelling units.
Canopy Lawn Care retains several rights within and outside the franchisee's territory. These include the right to operate or franchise businesses outside the territory, sell products or services through alternate channels of distribution (including the Internet, which is exclusively reserved for Canopy Lawn Care), use other proprietary marks, purchase or merge with any business (even competitors), implement multi-area marketing programs, and provide services directly or indirectly to National Accounts. A "National Account" is defined as customers desiring central billing accounts or having at least 20 locations in more than one franchised or company-owned territory. Franchisees must participate in any designated National Accounts Program and may be required to pay associated fees. Franchisees must refer any National Account that contacts them directly to Canopy Lawn Care and cannot negotiate contracts with them without written consent.
Canopy Lawn Care also reserves the right to modify a franchisee's territory when a Successor Franchise Agreement is executed to conform to then-current standards for protected territories. This may occur if there have been changes in population or dwelling units or if different standards are used. If the original territory encompasses more than one protected territory under the new standards, the franchisee may be required to execute multiple Successor Franchise Agreements to continue operating in the entire original territory. Additionally, Canopy Lawn Care reserves the right to assign jobs to other franchisees, complete the job themselves, or hire a third-party specialist if they determine a franchisee is unable or unwilling to handle a particular job.