What is the Lessee's obligation to Canopy Lawn Care 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 lessee bears the entire risk of loss, theft, damage, or destruction of any vehicle, which is defined as a "Casualty Occurrence."
In the event of a Casualty Occurrence, the lessee must promptly notify the lessor. The lessee is then obligated to restore the vehicle to good repair and working order. However, if Canopy Lawn Care determines the vehicle to be lost, stolen, destroyed, or damaged beyond repair, which is termed a "Totaled Vehicle," the lessee must pay Canopy Lawn Care the amounts owed under Sections 3(b) and 3(c) of the agreement within 30 days of the incident.
Upon payment for a Totaled Vehicle, the agreement between the lessee and Canopy Lawn Care will terminate with respect to that specific vehicle. This means the franchisee's financial responsibility for that vehicle ceases after the payment is made, but the franchise agreement continues for any other vehicles under lease.