What happens if the Lessee of Canopy Lawn Care breaches any term of the agreement?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
If Lessee fails to pay any amount due under this Agreement or to comply with any of the covenants contained in this Agreement, Lessor, Servicer or any other agent of Lessor may, at its option, pay such amounts or perform such covenants and all sums paid or incurred by Lessor in connection therewith will be repayable by Lessee to Lessor upon demand together with interest thereon at the Default Rate.
Lessee's obligations to make all payments of rent and other amounts under this Agreement are absolute and unconditional and such payments shall be made in immediately available funds without setoff, counterclaim or deduction of any kind.
Upon the occurrence of any Event of Default, Lessor, without notice to Lessee, will have the right to exercise concurrently or separately (and without any election of remedies being deemed made), the following remedies: (a) Lessor may demand and receive immediate possession of any or all of the Vehicles from Lessee, without releasing Lessee from its obligations under this Agreement; if Lessee fails to surrender possession of the Vehicles to Lessor on default (or termination or expiration of the Term), Lessor, Servicer, any other agent of Lessor and any of Lessor's independent contractors shall have the right to enter upon any premises where the Vehicles may be located and to remove and repossess the Vehicles; (b) Lessor may enforce performance by Lessee of its obligations under this Agreement; (c) Lessor may recover damages and expenses sustained by Lessor, Servicer, any other agent of Lessor or any of their respective successors or assigns by reason of Lessee's default including, to the extent permitted by applicable law, all costs and expenses, including court costs and reasonable attorneys' fees and expenses, incurred by Lessor, Servicer, any other agent of Lessor or any of their respective successors or assigns in attempting or effecting enforcement of Lessor's rights under this Agreement (whether or not litigation is commenced) and/or in connection with bankruptcy or insolvency proceedings; (d) upon written notice to Lessee, Lessor may terminate Lessee's rights under this Agreement; (e) with respect to each Vehicle, Lessor may recover from Lessee all amounts owed by Lessee under Sections 3(b) and 3(c) of this Agreement (and, if Lessor does not recover possession of a Vehicle, (i) the estimated wholesale value of such Vehicle for purposes of Section 3(c) shall be deemed to be $0.00 and (ii) the calculations described in the rst two sentences of Section 3(c) shall be made without giving effect to clause (ii) in each such sentence); and/or (f) Lessor may exercise any other right or remedy which may be available to Lessor under the Uniform Commercial Code, any other applicable law or in equity.
Lessee agrees to defend and indemnify Lessor, Servicer, any other agent of Lessor and their respective successors and assigns from and against any and all losses, damages, liabilities, suits, claims, demands, costs and expenses (including, without limitation, reasonable attorneys' fees and expenses) which Lessor, Servicer, any other agent of Lessor or any of their respective successors or assigns may incur by reason of Lessee's breach or violation of, or failure to observe or perform, any term, provision or covenant of this Agreement, or as a result of any loss, damage, theft or destruction of any Vehicle or related to or arising out of or in connection with the use, operation or condition of any Vehicle.
The provisions of this Section 12 shall survive any expiration or termination of this Agreement.
Source: Item 23 — RECEIPT (FDD pages 55–199)
What This Means (2025 FDD)
According to the 2025 FDD, several consequences may arise if a Canopy Lawn Care lessee breaches the terms of their agreement. If the lessee fails to pay any amount due or comply with any covenants, the lessor or their agents have the option to pay those amounts or perform those covenants themselves. The lessee is then obligated to repay the lessor upon demand, along with interest at the default rate. The lessee's payment obligations are absolute and unconditional, meaning they must be made without any setoff, counterclaim, or deduction.
Furthermore, Canopy Lawn Care's lessor can take immediate action without notice if an Event of Default occurs. They can demand immediate possession of the vehicles without releasing the lessee from their obligations. If the lessee doesn't surrender the vehicles, the lessor and their agents have the right to enter the premises where the vehicles are located and repossess them. The lessor can also enforce the lessee's obligations, recover damages and expenses resulting from the default, and even terminate the lessee's rights under the agreement with written notice.
In addition to the above, the lessee is obligated to defend and indemnify the lessor, its agents, and their successors against any losses, damages, liabilities, suits, claims, costs, and expenses (including attorney's fees) resulting from the lessee's breach or violation of the agreement. This also applies to any loss, damage, theft, or destruction of any vehicle related to its use or operation. These indemnity provisions survive any expiration or termination of the agreement, meaning the lessee's responsibility extends beyond the agreement's term.
These terms highlight the importance of adhering to the agreement and the potential financial and legal repercussions of failing to do so. A prospective Canopy Lawn Care franchisee should carefully review the terms and conditions of the agreement and seek legal counsel to fully understand their obligations and potential liabilities.