What is the dependency between notices of default and termination for Canopy Lawn Care franchisees?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
t 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.
- 17.4 A termination of this Agreement by Franchisee shall be deemed to be a termination without cause and a breach hereof, by Franchisee. Franchisee agrees that it shall not, on grounds of an alleged nonperformance by Franchisor of any of its obligations or any other reason, withhold payment of any amount due to Franchisor whatsoever or set off amounts owed to Franchisor under this Agreement, against any monies owed to Franchisee, which right of set off is hereby expressly waived by Franchisee.
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 procedures regarding default notices and termination. Generally, if a franchisee fails to comply with the franchise agreement or any standards prescribed by Canopy Lawn Care, they will receive a written notice detailing the required corrective actions. Franchisees typically have 10 days to correct the failure, but if it's the first instance of non-compliance, they are given 30 days to correct the failure after receiving written notice from Canopy Lawn Care.
However, if the breach is curable but cannot be reasonably resolved within 30 days, and the franchisee is making a good faith effort to cure the breach, Canopy Lawn Care may grant an additional reasonable period, not exceeding 30 days, to fully resolve the issue.
There are certain defaults that will result in immediate termination without notice if not cured within 30 days of the initial notice. These include failing to maintain operating standards, neglecting to obtain required prior written approval, or failing to comply with the current manual requirements. This means a Canopy Lawn Care franchisee needs to be vigilant about adhering to all operational guidelines and seeking necessary approvals to avoid potential termination of their franchise agreement.