Does the Canopy Lawn Care Franchise Agreement include an attachment related to 'Territory'?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.1 During the Initial Term and any Interim Period and for so long as Franchisee is in compliance with all of its obligations hereunder, except as otherwise provided in this Agreement, including Franchisor's reservation of rights as set forth in Sections 4.2, 4.4 and 4.7, neither Franchisor nor any Affiliate will establish or license another person or entity to establish a Lawn Care Business using the Marks licensed to Franchisee within the Territory encompassed by the boundaries and with the population base set forth in Attachment A, attached hereto and incorporated herein by reference. Except as otherwise specifically provided in this Agreement, this Agreement does not restrict Franchisor or its Affiliates and does not grant rights to Franchisee to pursue any of Franchisor's or its Affiliates other business concepts other than the Lawn Care Business.
Source: Item 22 — CONTRACTS (FDD page 55)
What This Means (2025 FDD)
According to the 2025 Canopy Lawn Care Franchise Disclosure Document, the Franchise Agreement does include an attachment pertaining to the franchisee's territory. Specifically, Section 4.1 of the Franchise Agreement discusses the territory granted to the franchisee, and it explicitly references "Attachment A" as defining the boundaries and population base of that territory. This attachment is incorporated into the agreement by reference, meaning it is a legally binding part of the contract.
This means that a prospective Canopy Lawn Care franchisee's exclusive operating area is formally defined in Attachment A of the Franchise Agreement. During the initial term (and any interim period) of the agreement, Canopy Lawn Care agrees not to establish or license another Lawn Care Business using the same Marks within the territory defined in Attachment A, as long as the franchisee complies with their obligations under the agreement. However, Canopy Lawn Care retains specific rights, as detailed in Sections 4.2, 4.4, and 4.7, which may impact the franchisee's territory.
It is important to note that the franchise granted is non-exclusive, and Canopy Lawn Care retains the right to use, and license others to use, the Marks and System for Lawn Care Businesses at any location outside the Territory. They can also use or franchise other trademarks or service marks, even within the Territory, for operations that may be the same as, similar to, or different from a Lawn Care Business. Canopy Lawn Care also retains the right to market on the Internet and use the Marks on the Internet. A franchisee should carefully review Attachment A and Sections 4.2, 4.4, and 4.7 of the Franchise Agreement to fully understand the scope and limitations of their territorial rights.