For Canopy Lawn Care, who assumes the risk of loss, theft, damage, or destruction of a vehicle?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
RISK OF LOSS: Lessee assumes and agrees to bear the entire risk of loss of, theft of, damage to or destruction of any Vehicle from any cause whatsoever ("Casualty Occurrence").
In the event of a Casualty Occurrence to a Vehicle, Lessee shall give Lessor prompt notice of the Casualty Occurrence and thereafter will place the applicable Vehicle in good repair, condition and working order; provided, however, that if the applicable Vehicle is determined by Lessor to be lost, stolen, destroyed or damaged beyond repair (a "Totaled Vehicle"), Lessee agrees to pay Lessor no later than the date thirty (30) days after the date of the Casualty Occurrence the amounts owed under Sections 3(b) and 3(c) with respect to such Totaled Vehicle.
Upon such payment, this Agreement will terminate with respect to such Totaled Vehicle.
Source: Item 23 — RECEIPT (FDD pages 55–199)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the lessee bears the risk of loss, theft, damage, or destruction of any vehicle. This responsibility extends to any cause whatsoever, which is termed a "Casualty Occurrence."
In the event of a Casualty Occurrence, the Canopy Lawn Care franchisee (lessee) must promptly notify the lessor. The franchisee is then obligated to restore the vehicle to good condition. However, if the lessor determines the vehicle to be a "Totaled Vehicle" (lost, stolen, destroyed, or damaged beyond repair), the franchisee must pay the lessor the amounts owed under Sections 3(b) and 3(c) of the agreement within 30 days of the incident. Upon such payment, the agreement terminates specifically for that totaled vehicle.
This arrangement places significant financial responsibility on the Canopy Lawn Care franchisee. They are responsible for insuring against potential losses and covering the costs associated with vehicle damage or loss. Franchisees should carefully consider these potential expenses and ensure they have adequate insurance coverage and financial resources to meet these obligations.