Under what circumstances would a Canopy Lawn Care franchisee be required to pay a management fee?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Attorneys' Fees and | The prevailing party shall be entitled to recover from the losing party, in addition to any judgment, reasonable attorneys' fees, court costs and all of the prevailing party's expenses in connection with any action at law, and interest on such expenses. | ||
| Costs, and Arbitration | |||
| Management Fee | 10% of Gross Revenues plus costs and expenses | Upon demand | Only payable in the event we must temporarily operate your franchise due to death, disability, etc. The Management Fee would be paid in addition to royalties, Brand Fund contributions and any other fees due to us. |
| Supplemental or | Then-current fee | As incurred | Payable if we require you to attend any additional or supplemental training programs. We do not pay any travel expenses, lodging, meals, ground transportation or other personal expenses. |
| Refresher Training | |||
| Early Termination Fee | An amount equal to 24 times the average monthly Royalty fees payable to Franchisor over (i) the last 12 months of the Franchised Business's active operations, or (ii) the entire period the Franchised Business has been open for business, whichever is the shorter period. | Within 30 days of the early termination date | We may require you to pay us an early termination fee in the event the Franchise Agreement is terminated prior to its natural expiration date. |
| Post-Termination or | Costs and expenses | As incurred | You must pay all costs and expenses related to de-identifying the Lawn Care Business or otherwise complying with your post-termination or post-expiration obligations. |
| Post-Expiration | |||
| Expenses | |||
| Fines | Up to $1,000 per infraction | As incurred | Failure to operate in accordance with operating standards. |
| Unreported or | 2% of the unre |
Source: Item 6 — OTHER FEES (FDD pages 19–24)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, a franchisee may be required to pay a management fee in specific circumstances. This fee is levied only if Canopy Lawn Care must temporarily take over the operation of the franchise. This situation would arise due to events such as the franchisee's death or disability, which prevent them from managing the business themselves.
The management fee is calculated as 10% of the franchise's Gross Revenues, in addition to covering any costs and expenses incurred by Canopy Lawn Care during the period they are managing the business. It's important to note that this management fee is separate from, and in addition to, any royalties, Brand Fund contributions, and other fees that the franchisee is normally obligated to pay.
This provision ensures that Canopy Lawn Care can maintain the operation of the franchise during unforeseen circumstances while also being compensated for their efforts and expenses in managing the business temporarily. For a prospective franchisee, this highlights the importance of having contingency plans in place for events that could prevent them from running the business, as well as understanding the financial implications should Canopy Lawn Care need to step in.