What is the definition of 'Affiliates' as it relates to termination of a Canopy Lawn Care franchise agreement?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) "Affiliate" means any person or entity that controls, is controlled by, or is in common control with, Franchisor.
Source: Item 22 — CONTRACTS (FDD page 55)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, an 'Affiliate' is defined as any person or entity that controls, is controlled by, or is in common control with, the Franchisor.
This definition is important because it clarifies the scope of Canopy Lawn Care's rights and obligations, as well as those of its related entities. For example, the franchise agreement specifies that neither Canopy Lawn Care nor its affiliates will establish or license another Lawn Care Business using the Marks licensed to the franchisee within the designated territory, subject to certain reservations of rights by the franchisor. This clause protects the franchisee's territory from direct competition by the franchisor or its related entities.
However, the agreement also states that it does not restrict Canopy Lawn Care or its affiliates from pursuing other business concepts outside of the Lawn Care Business. Furthermore, Canopy Lawn Care and its affiliates retain the right to use, and license others to use, the Marks and System for the operation of Lawn Care Businesses at any location outside the franchisee's territory. They can also use other trademarks or service marks in alternative channels of distribution, even within the franchisee's territory. This means that while the franchisee has some territorial protection against direct competition under the Canopy Lawn Care brand, Canopy Lawn Care and its affiliates have broad rights to operate other businesses, even those that may be similar to the franchised Lawn Care Business, under different brands or through different channels.