Canopy Lawn Care

The franchise grew from 4 units in 2023 to 42 units in 2024 (950% growth). What was the primary driver of this expansion—new unit recruitment, acquisitions, or corporate-owned openings? And was there any change in franchisee recruitment standards or support capacity during this period?

Six units exited in 2024-2025 (2 closures, 4 terminations). Can you provide specific reasons for each termination and closure? Were these related to performance, contract violations, or other factors?

What are the specific 11 renewal conditions referenced in the contract? How does the renewal process work in practice, and what percentage of franchisees have successfully renewed their agreements?

The non-compete radius is 10 miles, significantly below the typical 25-50 miles for landscaping franchises. What is the rationale for this shorter radius, and how does the franchisor prevent market cannibalization with this narrower restriction?

What does the renewal fee structure entail? The contract mentions the renewal fee is 'the greater of' certain amounts—can you clarify the exact calculation and typical renewal costs?

Can you explain the 11 renewal conditions in detail? Are there any conditions that historically have caused franchisees difficulty or prevented renewal?

The Item 19 financial performance data shows average gross sales of $963,529. What is the median or range of sales across franchisees? What is the average net profit or EBITDA for established units?

How many of the current 46 units are profitable? What is the average time to profitability, and what percentage of franchisees fail to achieve profitability?

What support and training are provided during the ramp-up phase? Given the 950% growth in one year, how has the franchisor scaled its support infrastructure, and are there any franchisee complaints about insufficient training or support?

The termination rate is 4.8%. Beyond the 19 non-curable defaults listed, what are the most common reasons for franchisor-initiated terminations in this system?

The contract includes minimum royalty requirements. What is the typical minimum monthly royalty, and how many franchisees pay the minimum versus the 8% gross revenue amount?

Personal guarantees are required from all individuals owning 5% or greater interest, including spouses without ownership interest. Has this requirement created any disputes, and are there any circumstances under which the franchisor waives spousal guarantees?

The commercial general liability insurance requirement mentions specific coverage amounts. What are those minimums, and who is named as additional insured—the franchisor, the parent company, or both?

The 18% annual interest on late payments is mentioned. How many franchisees have incurred late payment penalties in the past 3 years, and what is the average penalty amount?

Territory is protected but not exclusive. What does 'protected' mean operationally? Can the franchisor establish competing franchises or company-owned locations within my territory?

Have there been any encroachment disputes or complaints from franchisees regarding protected but non-exclusive territory? Can you provide examples of how encroachment disputes have been resolved?

What is the typical investment range to open a Canopy Lawn Care franchise, including equipment, initial inventory, and working capital? How close is this to the $49,500 franchise fee?

Does the franchisor provide financing, equipment leasing, or preferred lender relationships? If so, what are the typical terms and rates?

With zero transfers in the past year, what is the franchisee retention rate, and why have no franchisees transferred their units to new owners?

What is the current status of the 4 units that terminated or closed in 2025? Are they being re-recruited, and what is the franchisor's plan to stabilize the recent growth?