What is the dependency between default notices and termination for Canopy Lawn Care franchisees?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
In that event, this Agreement will terminate without further notice to Franchisee, effective upon expiration of the 30 day period.
Defaults shall include, but not be limited to, the following:
(a) Franchisee fails to maintain the then-current operating procedures and standards established by Franchisor as set forth herein or in the Manual or otherwise communicated to Franchisee;
(b) Franchisee fails, refuses or neglects to obtain Franchisor's prior written approval or consent as required by this Agreement;
(c) Franchisee fails or refuses to comply with the then-current requirements of the Manual;
(d) Franchisee, or any partnership, joint venture, limited liability company, corporation or other business entity in which Franchisee has a controlling equity interest, defaults under any term of the lease of any premises used by Franchisee for operations or storage, any other license agreement or franchise agreement with Franchisor or any other agreement material to the Business and such default is not cured within the time specified in such lease, other license agreement, franchise agreement or other agreement;
(e) Franchisee fails, refuses or neglects to submit a statement of monthly revenues accompanying the Royalty Fees or any other report required under the Agreement when due;
(f) Franchisee fails, refuses or neglects to accurately report Gross Revenues, sales information or other information required by Franchisor to be reported;
(g) Franchisee fails to comply with any other provision of this Agreement or any specification, standard or operating procedure prescribed by Franchisor and does not correct such failure within 10 days (or 30 days if this is the first non-compliance or breach) after written notice from Franchisor (which shall describe the action that Franchisee must take) is delivered to Franchisee; or
- 17.3 Notwithstanding the foregoing, if the breach is curable, but is of a nature which cannot be reasonably cured within such 30 day period and Franchisee has commenced and is continuing to make good faith efforts to cure the breach during such 30 day period, Franchisee shall be given an additional reasonable period of time to cure the same, but in no event longer than 30 additional days.
Source: Item 22 — CONTRACTS (FDD page 55)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the franchise agreement outlines specific conditions under which a franchisee may receive a notice of default, potentially leading to the termination of the agreement. If a Canopy Lawn Care franchisee fails to comply with the franchise agreement or any standards or operating procedures prescribed by Canopy Lawn Care, they will receive a written notice and have 10 days to correct the failure. However, if it is the first instance of non-compliance or breach, the franchisee has 30 days to correct the failure after receiving written notice from Canopy Lawn Care. The written notice will describe the action the franchisee must take to remedy the situation.
However, if the breach is of a nature that cannot be reasonably cured within 30 days, and the Canopy Lawn Care franchisee has started and continues to make good faith efforts to fix the breach, an additional reasonable period of time, not exceeding 30 days, will be granted to cure the breach. If the franchisee does not cure the default within the specified time frame, Canopy Lawn Care has the right to terminate the agreement without further notice.
Defaults that can lead to termination include failing to maintain operating procedures, neglecting to obtain required prior written approval from Canopy Lawn Care, not complying with the current version of the manual, defaulting on lease terms for premises, or failing to submit accurate revenue statements and royalty fees. Additionally, if a Canopy Lawn Care franchisee has another franchise agreement with the company, a default under one agreement constitutes a default under all agreements, potentially leading to termination of all agreements.