What happens if a Canopy Lawn Care franchisee or owner is charged with a felony?

According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the franchise agreement can be terminated if a franchisee or any owner of greater than 20% of the franchisee entity or operator is charged or convicted of a felony. This also applies to a crime involving moral turpitude, or any crime or offense that is reasonably likely, in the sole opinion of Canopy Lawn Care, to materially and unfavorably affect the System, Marks, goodwill or reputation thereof.

This clause gives Canopy Lawn Care broad discretion to terminate the franchise agreement based on criminal charges or convictions of the franchisee or significant owners. The determination of whether a crime is likely to materially and unfavorably affect the System, Marks, goodwill, or reputation is at the sole opinion of Canopy Lawn Care, which introduces a degree of subjectivity.

For a prospective franchisee, this means that any criminal charges or convictions, even if not directly related to the operation of the Canopy Lawn Care business, could potentially lead to termination of the franchise agreement. This is a significant risk, as it could result in the loss of the franchise and the associated investment. Franchisees should be aware of this clause and carefully consider the potential implications of any criminal charges or convictions. It is also important to note that this clause applies not only to the franchisee but also to any owner with greater than 20% ownership in the franchisee entity or operator.