Does a Canopy Lawn Care franchisee's insurance procurement relieve them of their indemnity obligations?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) Franchisee's obligation to obtain and maintain insurance coverage in the amounts required by Franchisor shall not be limited in any way by reason of any insurance that Franchisor may maintain, nor does Franchisee's procurement of required insurance relieve Franchisee of liability under the indemnity obligations described in Section 12.2.
Franchisee's insurance procurement obligations under this Section are separate and independent of Franchisee's indemnity obligations.
Source: Item 22 — CONTRACTS (FDD page 55)
What This Means (2025 FDD)
According to the 2025 Canopy Lawn Care Franchise Disclosure Document, a franchisee's insurance procurement does not relieve them of their indemnity obligations. Canopy Lawn Care emphasizes that the franchisee's responsibility to obtain and maintain the required insurance coverage does not limit their liability under the indemnity obligations outlined in Section 12.2 of the franchise agreement.
Canopy Lawn Care specifies that the franchisee's insurance procurement obligations are separate and independent of the franchisee's indemnity obligations. This means that even if a franchisee has the required insurance coverage, they are still responsible for indemnifying Canopy Lawn Care against claims, losses, damages, and expenses arising from the franchisee's operation of the business or any breach of the franchise agreement.
This provision protects Canopy Lawn Care from potential liabilities arising from the franchisee's actions or business operations. It also ensures that the franchisee remains responsible for any damages or losses, regardless of whether they are covered by insurance. Prospective Canopy Lawn Care franchisees should carefully review Section 12.2 of the franchise agreement to fully understand their indemnity obligations and consult with legal and insurance professionals to assess their potential liabilities and insurance needs.