Canopy Lawn Care Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$97,900 - $185,200
Franchise Fee
$24,750
Min Cash Required
$15,000
Total US Locations
42
Business Summary
Canopy Lawn Care operates a business that provides environmentally-responsible, subscription-based, and tech-enabled lawn care services. These services primarily include lawn applications for turf fertilization, weed control, and prevention. Franchisees also have the option to offer related enhancement services such as lawn aeration, over-seeding, small lawn renovations, soil amendments, disease control, top dressing, tree and shrub care, and lawn pesticide applications. The business typically starts from a home office with access to a storage unit, with services performed at customer locations using specialized vehicles. Canopy Lawn Care does not include services like landscape design or building, lawn mowing, or structural pest control.
Corporate History
Canopy Franchise Corporation, the franchisor, was formed as a Delaware corporation on June 17, 2022. In June 2023, Empower Brands Franchising, LLC became the majority equity owner, and Canopy Franchise Corporation has been the franchisor of the Canopy® system since that time. An affiliate, CanopyNC Ventures LLC, has been operating company-owned Canopy® Lawn Care Businesses in Raleigh, North Carolina, and Charlotte, North Carolina, since January 2015.
Financial Overview
Investment Range
$97,900 - $185,200
Franchise Fee (Low)
$24,750
Franchise Fee (High)
$68,500
Minimum Cash Required
$15,000
Royalty %
8%
Marketing %
1%
Equipment Costs (Low)
$15,000
Equipment Costs (High)
$40,000
Working Capital
$17,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Canopy Lawn Care's financial statements are consolidated with its parent company, Outdoor Living Brands Holdco, LLC (OLB Holdco). OLB Holdco has provided an unqualified audit opinion on its consolidated financial statements. The auditors' report includes an emphasis of matter regarding significant transactions with related parties and a change in accounting policy. OLB Holdco and its affiliates have guaranteed approximately $294 million of credit facilities obtained by its ultimate parent, Empower Brands. As of September 30, 2024, OLB Holdco had healthy net income of $20.6 million and positive working capital, though its member's equity decreased slightly from the prior year. Canopy Lawn Care also notes significant related party transactions.
Financing Details
Canopy Lawn Care offers limited financing to qualifying existing franchisees. They may finance up to 80% of the franchise fee for up to 24 months, with an interest rate 4 percentage points above the prime interest rate on the effective date of the Franchise Agreement. There is no prepayment penalty. No security interest is required, but the franchisee and certain owners must sign a personal guarantee. If a payment is late, Canopy Lawn Care may declare the entire unpaid balance immediately due or accept the late payment with a 10% late charge. If the balance is accelerated and not paid within 10 days, interest will accrue at up to 18% per year, and Canopy Lawn Care can seek attorneys' fees. Canopy Lawn Care does not offer direct or indirect financing for other items like vehicles or general obligations and does not guarantee franchisee notes or leases. Vehicle leases are arranged through an unaffiliated third party, Enterprise FM Trust.
Performance Metrics
Total US Locations
42
Franchised Units
37
Corporate Units
5
Franchising Since
2023
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Canopy Lawn Care has no litigation history to report. Item 3 of the FDD states that no litigation is required to be disclosed.
Bankruptcy History
Canopy Lawn Care has no bankruptcy history to report. Item 4 of the FDD states that no bankruptcy is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Canopy Lawn Care franchisees must satisfy several conditions. They must give written notice of their intent to renew between two and six months before the current term expires. Franchisees must be current on all payments to Canopy Lawn Care and its affiliates and not have committed three or more breaches of their agreement in the 12 months prior to the end of the term. They must meet Canopy Lawn Care's then-current qualifications for new and renewing franchisees, sign a new successor franchise agreement (which may have different terms, including potentially higher royalties and advertising contributions), pay a successor franchise fee (the greater of $10,000 or 20% of the then-current initial franchise fee), execute a general release of claims against Canopy Lawn Care, upgrade their computer system and vehicles to current standards, and provide proof of current licenses, insurance, and permits.
Training & Support Program
Franchisor Assistance
Before opening, Canopy Lawn Care assists franchisees by designating their territory, providing specifications for initial and replacement equipment, tools, vehicles, inventory, and supplies, and offering an initial training program. They also loan a confidential operations manual and may provide on-site assistance during the first months of operations. Ongoing assistance from Canopy Lawn Care includes informing franchisees of mandatory operating standards and procedures, making representatives available by phone to discuss operational issues, researching new products, services, and methods, and administering the Brand Fund for promotional programs. They also provide advertising materials, bookkeeping services (for a fee), and may offer additional assistance. Franchisees are required to attend mandatory annual conferences and may also be offered periodic conference calls or meetings.
Initial Training Hours
62
Training Location
Raleigh, NC or Richmond, VA
Ongoing Support
After opening, Canopy Lawn Care provides ongoing support through various channels. They inform franchisees of mandatory specifications, standards, and procedures for business operations. Representatives are reasonably available by telephone during business hours for operational discussions. Canopy Lawn Care researches new products, services, and methods, and shares this information. They administer the Brand Fund for promotional and advertising programs and provide advertising materials in the form of a graphics package. Bookkeeping services are provided for a fee, and additional assistance may be offered at Canopy Lawn Care's discretion. Franchisees are required to attend mandatory annual conferences and may be offered periodic conference calls or meetings, though these may incur fees and travel expenses for the franchisee.
Franchise Requirements
Ideal Candidate Profile
Canopy Lawn Care seeks franchisees or their Designated Business Managers who can directly supervise the Lawn Care Business at the franchised location. If Canopy Lawn Care believes an owner lacks sufficient business experience, a Designated Business Manager must be appointed as the operating manager. Owners with a 5% or greater interest must sign a personal guarantee. Franchisees must have sufficient computer skills to operate their system, access email, and the internet, with potential for required additional computer training. The franchisee is solely responsible for hiring, scheduling, supervising, compensating, and disciplining all employees and maintaining a trained staff sufficient to meet Canopy Lawn Care's standards.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
Yes
Operational Details
Location Type
hybrid
Owner Participation
supervisory
Territory Type
non-exclusive
Territory Size Requirements
Canopy Lawn Care grants a license for a territory defined by up to 45,000 single-family dwelling units. The number of single-family dwelling units is determined using the most recent U.S. Census Data or other chosen statistical sources. If a territory exceeds 45,000 single-family dwelling units, the franchisee must pay an additional fee of $0.95 per unit over that limit. Canopy Lawn Care reserves the right to modify these dwelling limits or demographic factors.
Staffing Notes
Canopy Lawn Care franchisees must directly supervise the business, either personally or through a Designated Business Manager. They are responsible for locating, interviewing, hiring, scheduling, supervising, compensating, and disciplining all employees. Franchisees must implement an employee training program and maintain a staff sufficient to operate the business according to Canopy Lawn Care's mandatory standards. A key staffing requirement is tied to vehicles: for every 300 customer accounts, a franchisee must have at least one vehicle, and if this ratio is exceeded, an additional vehicle must be obtained within 60 days. This implies a need for a certain number of lawn care technicians to operate these vehicles.