What is the effect of discovering new facts after signing the release agreement for Canopy Lawn Care?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Successor Addendum ("Successor Addendum") to the Successor Franchise Agreement is made and entered into this day of, 20, by and between CANOPY FRANCHISE CORPORATION ("Franchisor") and ("Franchisee"). | |
|---|---|
| BACKGROUND | |
| 1. 20 ("Franchise | Franchisor and Franchisee entered into a Franchise Agreement dated, Agreement") pursuant to which Franchisee operates a Canopy® Lawn Care Business located in ("Franchised Business"). |
| 2. | The Franchise Agreement will expire by its own terms on, 20 |
| 3. | Franchisor and Franchisee intend to enter into a successor franchise agreement ("Successor |
| Franchise Agreement") and desire to amend its terms by incorporating the terms of this Successor | |
| Addendum into the Successor Franchise Agreement. | |
| AGREEMENT | |
| 1. | NO ADDITIONAL SUCCESSOR TERMS. Franchisor and Franchisee acknowledge |
| and agree that, notwithstanding Section 3 of the Successor Franchise Agreement, Franchisee has no rights | |
| to any additional successor terms upon the expiration or termination of the Successor Franchise Agreement. | |
| Franchisor, however, reserves the right to offer Franchisee additional successor terms. | |
| 3. | FRANCHISE FEE. Section 5 is amended as follows: |
| A. | |
| Section 5.1 is deleted in its entirety and replaced with the following: | |
| "5.1 | |
| The | |
| Franchisee | |
| shall | |
| pay | |
| the | |
| sum | |
| of | |
| Dollars ($) | |
| plus, if due and payable, all applicable federal, state or municipal | |
| taxes, as a non-recurring and non-refundable (subject to Section | |
| 5.2) successor franchise fee ("Successor Franchise Fee") per | |
| Territory to the Franchisor upon the execution of this Agreement. | |
| The Successor Franchise Fee shall be paid by means of certified | |
| funds on a bank check. The Successor Franchise Fee shall be | |
| deemed to have been fully earned by the Franchisor when paid." | |
| 4. | GUIDANCE AND COACHING AND ASSISTANCE. Sections 7.3(c), 7.3(f) and 7.5 |
| are deleted in their entirety. | |
| 5. | FRANCHISEE'S DUTIES, OBLIGATIONS AND OPERATING STANDARDS. |
| Section 8.2(a) is deleted in its entirety. | |
| 6. | ATTACHMENT A. |
| In Section 2 of Attachment A, the phrase "Initial Franchise Fee" is replaced | |
| with "Successor Franchise Fee" in both the heading and in the first sentence of this | |
| section. |
- RELEASE OF CLAIMS. As of the date of this Successor Addendum, in consideration for Franchisor entering into the Successor Franchise Agreement, Franchisee does hereby compromise, settle, and absolutely, unconditionally, and fully release, discharge, and hold harmless for itself and each of its respective heirs, executors, administrators, representatives, successors, assigns, officers, members, managers, directors, shareholders, employees, partners, and affiliates (collectively, the "Franchisee Releasing Parties"), Franchisor and its past, present and future officers, directors, agents, attorneys, employees, shareholders, successors, assigns, members, managers, and Affiliates (collectively, the "Franchisor Released Parties"), for all purposes, of and from any and all claims, debts, demands, damages, costs, expenses, actions, causes of action, or suits of any kind whatsoever, at common law, statutory or otherwise, whether now known or not, whether contingent or matured, including, without limitation, any claim, demand, or cause of action arising out of or in connection with Franchisee's Lawn Care Business or the Franchise Agreement or any other contractual relation between Franchisee and Franchisor and/or any Franchisor Released Parties, which Franchisee Releasing Parties may have had or may now have directly
Source: Item 22 — CONTRACTS (FDD page 55)
What This Means (2025 FDD)
According to the 2025 FDD, if a Canopy Lawn Care franchisee signs a release of claims as part of a successor addendum, they are relinquishing all rights to pursue any legal action against the franchisor, its officers, directors, agents, employees, and affiliates, for any claims, debts, demands, damages, costs, expenses, actions, or suits that arise from events that occurred before the date of the release. This includes claims that are currently unknown or may arise in the future.
This means that even if a franchisee later discovers new information or facts about events that occurred before the release was signed, they are still bound by the release and cannot bring a claim against Canopy Lawn Care based on that new information. The release covers all possible claims, known or unknown, that existed up to the date it was signed.
The franchisee also agrees not to assist others in bringing claims against Canopy Lawn Care. This provision is comprehensive, preventing franchisees from seeking any form of compensation or relief, including actual, consequential, or punitive damages, and injunctive relief. The release is intended to provide Canopy Lawn Care with broad protection from past liabilities when a franchisee enters into a successor agreement.
In essence, a Canopy Lawn Care franchisee must be aware that signing this release is a significant legal commitment with far-reaching consequences. It is advisable for franchisees to seek legal counsel before signing such a release to fully understand the implications and ensure they are not unknowingly waiving valuable rights or claims.