For business owners

Questions to ask before signing a territory agreement

Connect the agreement to real operating decisions, from boundaries and costs to support, participation, renewal and transfer.

Blank notebook, calculator, keys and a folded work shirt on a sunlit wooden table.
Illustrative editorial image.

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A territory agreement deserves an unhurried reading. It connects an appealing idea—running a local service division with a shared brand and owner support—to specific rights, payments and responsibilities. The useful question is not simply whether the opportunity sounds promising. It is whether you understand what you would be agreeing to do.

Bring practical questions as well as legal and financial ones. A boundary clause affects which enquiries you can accept. A meeting requirement affects your working routine. A renewal provision affects future planning. The document becomes easier to evaluate when you connect its wording to situations that could arise in an ordinary business.

What documents make up the arrangement?

Ask for the complete current set of documents relevant to your proposed division and territory. That may include the main agreement and any schedules, policies or other materials it incorporates. Do not assume that a short summary contains every applicable obligation.

Identify the version and keep related documents together. If something changes during discussion, make sure you understand which version is intended for signature. Ask how later changes to incorporated materials would be communicated and governed. The answer must come from the actual terms, not from an assumption that an online page will always remain the same.

Have an appropriately qualified lawyer review the arrangement and explain which legal requirements apply. Ontario’s official franchising information describes disclosure obligations for arrangements within that legislation. This guide does not classify Cody Mobile’s model or decide which regime applies. The name used in a marketing description is not a substitute for legal review of the actual documents and circumstances.

Who is making each commitment?

Identify the parties to the agreement and the capacity in which you would sign. Ask your legal and accounting advisers about the implications for your own proposed business structure. Do not treat this as a minor administrative detail to resolve after payment.

Clarify who provides each part of the offer and who is responsible for your customer services. A shared brand, optional mentoring and a technology platform may involve different practical relationships. Ask where responsibility begins and ends, especially where another owner is offering separate support.

Cody Mobile describes a cooperative approach: Built by owners. Supported by owners. That phrase expresses how owners are intended to work together. It does not establish an incorporated cooperative status or determine the legal classification of the agreement. If a particular right matters to your decision, locate it in the relevant document and have its meaning explained rather than inferring it from a broad description.

What exactly is the territory?

The published offer covers territory rights for a selected service division, with an area of up to 250,000 people. Ask for the specific boundaries in a form you can identify on a map. A community name alone may leave uncertainty about neighbouring streets, rural areas or municipal edges.

Clarify what exclusivity means under the agreement and which service it concerns. Other divisions may serve the same community. Ask how out-of-area enquiries, customers who move and properties near a boundary are handled. Do not assume a friendly understanding with another owner changes contractual rights.

Hypothetical example: a prospective partner has existing customers on both sides of a proposed boundary. Before agreeing, she identifies the locations and asks how those relationships would be treated. The answer may affect whether the territory suits her plans. That practical question is more useful than waiting until a familiar customer requests another appointment and discovering that she has been relying on an untested assumption.

Which services may you provide?

Confirm the division and the work contemplated by the agreement. Cody Mobile’s published divisions are auto detailing, window cleaning and exterior care, lawn and garden care, and handyman services. Availability depends on the service and territory being discussed.

Ask how changes to a service menu are handled and what approvals or standards apply. In smaller markets, the published model allows discussion of two service divisions, but that is not automatic permission to offer any combination. The actual arrangement needs to match your capabilities, capacity and agreement.

Your own qualifications and applicable requirements still matter. A territory right does not make every task within a broad category suitable for you to perform. Use the service division guide and service menu guide to prepare a realistic description of the work you want to offer, then test that description against the programme terms and relevant professional advice.

What do you pay, and when?

The current published territory and brand licence fee is $8,600 every five years. It covers the brand licence, agreed territory rights and technology platform. The Partner Community Pool contribution is separate at $100 per month, with none of that contribution going to the company.

The current model has no company royalties or per-job company fees. Confirm the payment schedule, applicable taxes or charges, and the provisions governing renewal and future pricing. Do not assume the headline fee is the complete opening budget; vehicle preparation, tools, supplies and normal operating expenses also need planning.

Ask what happens to payment obligations if the start date changes or the arrangement ends under a particular clause. Do not infer a refund, cancellation right or penalty that has not been established. These questions belong in the agreement review with appropriate advice. The startup budget guide can help organise the other commitments surrounding the programme fee.

What support is included in a practical sense?

The published offer describes the brand, technology platform, a professional website and marketing support, together with an owner community. Ask what each component means for your proposed launch and ongoing operation. Who does what, what information must you provide and how do you request help?

Separate included support from optional arrangements. Hands-on mentoring or training may be arranged directly with another partner on agreed terms. Do not assume every trade skill, equipment demonstration or extended coaching session is included in the territory fee.

Hypothetical example: a prospective owner expects help setting up a quoting routine. He asks what the platform provides, what support is available and what he must prepare himself. The conversation becomes concrete enough to evaluate. It does not rely on interpreting the general phrase business support as a promise that someone else will run the administrative side of the division.

What are the vehicle and brand requirements?

The current programme calls for a Mercedes Sprinter or Ford Transit large cargo van with a Cody Mobile wrap. Artwork and design are supplied, while the owner arranges installation. Discuss an existing vehicle before purchasing or modifying it.

Ask which specifications, approvals and standards apply to your setup. Clarify responsibilities for website information, advertising, brand materials and public descriptions of the service. If you plan to use existing marketing assets, ask how those fit the arrangement rather than assuming they can continue unchanged.

Consider what happens when equipment or branding needs updating. Which decisions belong to the owner, and which require programme approval? The actual document should guide the answer. The tools and van guide helps connect these questions with practical loading, maintenance and purchase planning, while technical suitability and installation need the appropriate qualified advice.

How do meetings and the community pool work?

The published programme includes weekly or biweekly video meetings. Payout eligibility requires attendance at at least 80% of community meetings. Pool shares are affected by tenure, and founding partners retain additional weighting while active. New partners contribute from day one but do not receive payouts immediately.

Ask how attendance is measured, what establishes active tenure and when a new partner can qualify. Request the distribution rules and the reporting process. Illustrative payout examples are not guaranteed income, and growth assumptions should not be copied into your personal budget as promised receipts.

Ask how interruptions, departure and approved transfer affect the pool obligations and eligibility. Do not fill gaps with an informal interpretation. The community pool guide separates the published description from questions that need the agreement. Understanding those details allows you to evaluate the community commitment without confusing possible distributions with dependable funding for the business.

How are referrals recorded and paid?

The current programme describes 10% on business referred between partners, subject to its terms. Ask what qualifies, how it is recorded and when payment is determined. Clarify how cancellations, changed scopes, repeat work or overlapping introductions are addressed by the actual rules.

A referral arrangement does not guarantee a customer or a completed job. The receiving owner still needs to assess suitability, capacity and scope. The customer must remain free to decide whether they want an introduction or a service.

Hypothetical example: a prospective owner hears that another division could refer work in the same community. She asks about the process but does not treat that possibility as a booked customer base. Her business planning remains grounded in actual information. The referral guide explains the permission, privacy and communication practices that make introductions helpful, while the agreement governs the financial arrangement.

What standards and responsibilities apply to service delivery?

Ask what the programme expects concerning customer communication, quality, records, insurance and compliance. Identify which policies form part of the arrangement and which responsibilities remain yours as the operator. A shared brand makes consistency important, but the obligations need to be understood specifically.

Discuss how a customer concern is raised and handled, including when the programme should be informed. Ask how issues involving another division or a referral are managed. Do not assume that a customer can be passed between owners without a clear responsible contact.

For your own operation, verify applicable registrations, permits and other requirements using official sources and suitable advice. The Government of Canada’s startup guidance identifies these as part of preparing a business. The agreement and the regulatory requirements are related considerations, but one does not automatically resolve the other. Bring the actual service plan to the discussion so the questions are tied to work you intend to perform.

What happens at renewal or if circumstances change?

Ask about the term, renewal process, notice requirements and any conditions for continuation. The currently published fee is $8,600 every five years, but the agreement needs to explain the future pricing provisions and process that apply. Do not assume renewal happens automatically on unchanged terms.

Review provisions dealing with interruption, default, termination and dispute resolution with your lawyer. Understand what actions trigger a requirement, what notices are involved and what obligations may continue afterwards. Avoid relying on a general assurance that everyone will work something out if a difficult situation arises.

Hypothetical example: an owner anticipates moving home while continuing to serve the territory. She asks whether that change affects the agreement, vehicle base or operating arrangements. The specific scenario gives the reviewer something concrete to examine. It may be straightforward or it may require a process, but the answer is obtained before the move becomes an urgent operational issue.

What would a future transfer involve?

The published model allows resale to a vetted incoming partner, subject to the agreement’s transfer process and conditions. It does not guarantee a buyer, a sale price or a return. Ask what approval requires and how the term, fees and programme participation would be handled.

Clarify what rights and obligations could transfer and what needs separate treatment. Customer records, equipment, business arrangements and community tenure should not be assumed to move together automatically. Legal, privacy and financial questions may require different professional advice.

The handover guide offers a way to organise records and questions. Even if selling is not part of your immediate plan, understanding the exit provisions helps you evaluate the commitment. A right described as resellable is more meaningful when you understand the actual process and limitations than when it is treated as a promise of future value.

Does the final version match the discussion?

Before signing, compare the proposed final documents with the issues raised during review. Check that schedules, territory descriptions and any agreed amendments are attached and consistent. Do not assume a verbal clarification has been incorporated simply because everyone discussed it positively.

Keep a copy of the complete version reviewed by your advisers and identify any later change for them. A small wording adjustment can matter in context, while an unchanged page may depend on a revised schedule elsewhere. The appropriate reviewer can help assess the significance.

This final check is not about reopening every settled question. It is about ensuring that the commitment you make is the one you evaluated. If a material point is still missing or unclear, resolve it through the proper process before treating the paperwork as a formality.

What remains unanswered before you decide?

Create a final question list with references to the relevant clauses. Separate factual clarifications from requests to change a term. Record the answers and make sure any material agreement is reflected appropriately in the documents you are asked to sign.

Before deciding, check that you can explain:

  • The division, geographical rights and practical limits of the territory being offered.
  • The required payments, their timing and the obligations attached to renewal and participation.
  • The support included, the optional arrangements and the responsibilities you retain.
  • The rules governing referrals, the community pool, changes, concerns and a possible future transfer.
  • The outstanding legal, financial or operational questions that need qualified advice.

An application starts a conversation; it does not reserve a territory or commit you to payment. Use the partner page to begin that discussion and the complete agreement to evaluate the actual proposal. A sound decision is one you can explain in plain language, with important assumptions resolved and no reliance on guaranteed leads, earnings or returns that the programme does not promise.