What is the Canopy Lawn Care franchisee's obligation in the event of a Casualty Occurrence?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
RISK OF LOSS: Lessee assumes and agrees to bear the entire risk of loss of, theft of, damage to or destruction of any Vehicle from any cause whatsoever ("Casualty Occurrence").
In the event of a Casualty Occurrence to a Vehicle, Lessee shall give Lessor prompt notice of the Casualty Occurrence and thereafter will place the applicable Vehicle in good repair, condition and working order; provided, however, that if the applicable Vehicle is determined by Lessor to be lost, stolen, destroyed or damaged beyond repair (a "Totaled Vehicle"), Lessee agrees to pay Lessor no later than the date thirty (30) days after the date of the Casualty Occurrence the amounts owed under Sections 3(b) and 3(c) with respect to such Totaled Vehicle.
Upon such payment, this Agreement will terminate with respect to such Totaled Vehicle.
Source: Item 23 — RECEIPT (FDD pages 55–199)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the franchisee (referred to as Lessee) assumes the entire risk of loss, theft, damage, or destruction of any vehicle, which is defined as a "Casualty Occurrence." In the event of such an occurrence, the franchisee must promptly notify the franchisor (Lessor).
Following notification, the franchisee is responsible for placing the vehicle in good repair, condition, and working order. However, if the franchisor determines the vehicle to be lost, stolen, destroyed, or damaged beyond repair (a "Totaled Vehicle"), the franchisee must pay the franchisor the amounts owed under Sections 3(b) and 3(c) of the agreement no later than 30 days after the date of the casualty occurrence.
Upon this payment for a totaled vehicle, the agreement between Canopy Lawn Care and the franchisee will terminate with respect to that specific vehicle. This clause highlights the franchisee's significant financial responsibility for vehicles used in the operation of the Canopy Lawn Care franchise.