What is the duration of the non-compete period after termination or expiration of the Canopy Lawn Care franchise agreement?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
14.2 Restrictive Covenants. Franchisee covenants and agrees that:
- (b) Upon termination or expiration of the Initial Term or any Interim Period, regardless of the cause, or the transfer, sale or assignment of this Agreement by Franchisee, neither Franchisee, any guarantors, the Designated Business Manager nor Franchisee's owners will have any direct or indirect interest (i.e., through a relative) as a disclosed or beneficial owner, investor, partner, director, officer, employee, consultant, representative or agent, for two (2) years; in any Business: (1) in the Territory or any other franchisee's territory; (2) within 10 miles of the Territory or any other franchisee's territory; or (3) within 10 miles of any Franchisor or Affiliate owned Lawn Care Business.
14.3 If any person restricted by this Section 14 refuses to voluntarily comply with the foregoing obligations, the 2 year period will commence upon the entry of any order of a court or arbitrator enforcing this Section 14.
14.4 The parties have attempted in Section 14.2 to limit Franchisee's right to compete only to the extent necessary to protect Franchisor from unfair competition.
Source: Item 22 — CONTRACTS (FDD page 55)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, franchisees, guarantors, the Designated Business Manager, and the franchisee's owners are subject to a non-compete agreement for two years after the termination or expiration of the initial term or any interim period. This restriction applies regardless of the cause of termination, or the transfer, sale, or assignment of the agreement by the franchisee.
During this two-year period, these individuals are prohibited from having any direct or indirect interest in a competing business. This includes being an owner, investor, partner, director, officer, employee, consultant, representative, or agent. The restriction applies (1) within the franchisee's territory or any other franchisee's territory, (2) within 10 miles of the franchisee's territory or any other franchisee's territory, or (3) within 10 miles of any Canopy Lawn Care or affiliate-owned lawn care business.
The FDD also specifies that if someone refuses to comply with the non-compete obligations, the two-year period will begin upon a court or arbitrator order enforcing the non-compete agreement. Canopy Lawn Care states that they have attempted to limit the franchisee's right to compete only to the extent necessary to protect them from unfair competition.