Who bears the risk of loss for a Canopy Lawn Care vehicle?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
liates were advised of the possibility of such damages and/or (iii) the legal or equitable theory (contract, tort or otherwise) upon which a claim, action, cause of action, demand, lawsuit, arbitration, inquiry, proceeding or litigation is based, and notwithstanding the failure of any agreed or other remedy of its essential purpose.
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- 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.
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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, which would be the franchisee, assumes the entire risk of loss, theft, damage, or destruction of any vehicle from any cause. This is termed a "Casualty Occurrence." In the event of such an occurrence, the franchisee must promptly notify the lessor.
If a vehicle is repairable, the franchisee is responsible for placing it back in good working order. 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 casualty. Upon such payment, the agreement terminates with respect to that vehicle.
The franchisee is also required to purchase and maintain insurance policies covering each vehicle, naming the lessor as an additional insured and loss payee. This insurance must cover potential damage, claims, suits, actions, or liabilities. The required insurance includes Commercial Automobile Liability Insurance and Physical Damage Insurance (Collision & Comprehensive) with specific coverage limits and deductibles. The franchisee's insurance policies must provide that the coverage is primary and cannot be cancelled or modified without at least thirty days prior written notice to the lessor.