factual

What is the agreement referred to in this section for Canopy Lawn Care?

Canopy_Lawn_Care Franchise · 2025 FDD

Answer from 2025 FDD Document

[Item 22: CONTRACTS]

ATTACHMENT E TO FRANCHISE AGREEMENT

COLLATERAL ASSIGNMENT OF TELEPHONE NUMBERS AND TELEPHONE LISTINGS AND INTERNET ADDRESSES

THIS ASSIGNMENT is entered into this day of 20, in accordance with the terms of the Canopy® Franchise Agreement ("Franchise Agreement") between ("Franchisee") and CANOPY FRANCHISE CORPORATION, ("Franchisor"), executed concurrently with this Assignment, under which Franchisor granted Franchisee the right to own and operate a Lawn Care Business located at FOR VALUE RECEIVED, Franchisee hereby assigns to Franchisor (1) those certain telephone numbers and regular, classified or other telephone directory listings (collectively, the "Telephone Numbers and Listings") and (2) those certain Internet website addresses ("URLs") associated with Franchisor's trade and service marks and used from time to time in connection with the operation of the Lawn Care Business, as defined in the Franchise Agreement, at the address provided above. This Assignment is for collateral purposes only and, except as specified herein, Franchisor shall have no liability or obligation of any kind whatsoever arising from or in connection with this Assignment, unless Franchisor shall notify the telephone company and/or the listing agencies with which Franchisee has placed telephone directory listings (all such entities are collectively referred to herein as "Telephone Company") and/or Franchisee's internet service provider ("ISP") to effectuate the assignment pursuant to the terms hereof.

Upon termination or expiration of the Franchise Agreement (without the extension of Franchisee's rights to operate the Lawn Care Business), Franchisor shall have the right and is hereby empowered to effectuate the assignment of the Telephone Numbers and Listings and the URLs, and, in such event, Franchisee shall have no further right, title or interest in the Telephone Numbers and Listings and URLs, and shall remain liable to the Telephone Company and the ISP for all past due fees owing to the Telephone Company and the ISP on or before the effective date of the assignment hereunder.


[Item 22: CONTRACTS]

3. TERM OF THE AGREEMENT AND LICENSE

  • 3.1 This Agreement and the License granted shall continue for a period of ten years ("Initial Term"). This Initial Term shall begin on the date this Agreement is executed by Franchisor, subject, however, to termination in accordance with the provisions of this Agreement. When the Initial Term expires Franchisee shall have the option to extend its rights to operate the Lawn Care Business for two additional terms for a period of five years each ("Successor Term"), provided Franchisor determines in its sole and absolute discretion that Franchisee has met all of the following requirements:
    • (a) Franchisee has not failed to remedy any breach of this Agreement specified by Franchisor in a written notice to Franchisee as per Sections 17.1 or 17.2;
    • (b) Franchisee has not committed and received notice of three or more breaches of this Agreement in the 12 months prior to the end of the current Initial Term, even if such breaches were timely remedied;

  • (c) Franchisee has given Franchisor a written notice of intent to extend its rights to operate the Lawn Care Business no less than two months or more than six months prior to expiration of the Initial Term;

  • (d) Franchisee is current in its payment obligations to Franchisor, Franchisor's Affiliates, and Franchisee's trade creditors;

  • (e) Franchisee has met Franchisor's then-current qualifications for new or renewing Canopy® franchisees;

  • (f) Franchisee executes a successor franchise agreement ("Successor Franchise Agreement") and all other agreements in the form then being used by Franchisor in granting new franchises, which may contain materially different terms and conditions than this Agreement, provided that Franchisee will pay Franchisor the Successor Franchise Fee (defined below) instead of the Initial Franchise Fee and the Successor Term will be no less than five years, as described above.


This Successor Addendum ("Successor Addendum") to the Successor Franchise Agreement is made and entered into this day of, 20, by and between CANOPY FRANCHISE CORPORATION ("Franchisor") and ("Franchisee").
BACKGROUND
1. 20 ("Franchise Franchisor and Franchisee entered into a Franchise Agreement dated, Agreement") pursuant to which Franchisee operates a Canopy® Lawn Care Business located in ("Franchised Business").
2. The Franchise Agreement will expire by its own terms on, 20
3. Franchisor and Franchisee intend to enter into a successor franchise agreement ("Successor
Franchise Agreement") and desire to amend its terms by incorporating the terms of this Successor
Addendum into the Successor Franchise Agreement.
AGREEMENT
1. NO ADDITIONAL SUCCESSOR TERMS. Franchisor and Franchisee acknowledge
and agree that, notwithstanding Section 3 of the Successor Franchise Agreement, Franchisee has no rights
to any additional successor terms upon the expiration or termination of the Successor Franchise Agreement.
Franchisor, however, reserves the right to offer Franchisee additional successor terms.

Source: Item 22 — CONTRACTS (FDD page 55)

What This Means (2025 FDD)

According to the 2025 FDD, the agreement referenced in this section for Canopy Lawn Care is the Franchise Agreement. Several attachments and addendums are related to this agreement.

The Franchise Agreement grants the franchisee the right to operate a Canopy Lawn Care business. Attachment E to the Franchise Agreement is a Collateral Assignment of Telephone Numbers and Telephone Listings and Internet Addresses. This assignment ensures that upon termination or expiration of the Franchise Agreement, Canopy Lawn Care has the right to take over the franchisee's telephone numbers, listings, and URLs associated with the business.

Additionally, the initial term of the Franchise Agreement is ten years, with the option to extend for two additional five-year terms under certain conditions. These conditions include the franchisee's compliance with the agreement, adherence to payment obligations, and execution of a successor franchise agreement. A Successor Addendum to the Successor Franchise Agreement may also be entered into, potentially amending the terms of the Successor Franchise Agreement, including franchise fee arrangements and rights to additional successor terms.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.