For Canopy Lawn Care, against whom does the lessee have recourse if a vehicle proves defective?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
LESSEE ACKNOWLEDGES THAT LESSOR IS NOT A MANUFACTURER OF ANY VEHICLE OR AN AGENT OF A MANUFACTURER OF ANY VEHICLE.
- (b) LESSOR MAKES NO REPRESENTATION OR WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, WITH RESPECT TO ANY VEHICLE, INCLUDING, WITHOUT LIMITATION, ANY REPRESENTATION OR WARRANTY AS TO CONDITION, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE, IT BEING AGREED THAT ALL SUCH RISKS ARE TO BE BORNE BY LESSEE.
THE VEHICLES ARE LEASED "AS IS," "WITH ALL FAULTS." All warranties made by any supplier, vendor and/or manufacturer of a Vehicle are hereby assigned by Lessor to Lessee for the applicable Term and Lessee's only remedy, if any, is against the supplier, vendor or manufacturer of the Vehicle.
Source: Item 23 — RECEIPT (FDD pages 55–199)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, if a leased vehicle proves defective, the lessee's only remedy is against the vehicle's supplier, vendor, or manufacturer. Canopy Lawn Care, as the lessor, assigns all warranties made by these parties to the lessee for the term of the lease.
This means that Canopy Lawn Care franchisees cannot hold the lessor responsible for any defects in the vehicles they lease. Instead, they must pursue claims directly with the original manufacturer or vendor of the vehicle. This arrangement shifts the responsibility for vehicle defects away from Canopy Lawn Care and onto the franchisee, who must navigate warranty claims and repairs independently.
This "as is" leasing arrangement is not uncommon, but franchisees should carefully consider the implications. They should understand the terms of the manufacturer's warranties, potential repair costs, and the potential downtime associated with vehicle defects. Prospective franchisees should also inquire about the typical lifespan and maintenance requirements of the vehicles used in the Canopy Lawn Care business to assess the potential risks and costs associated with this arrangement.