Is the Lessor or Servicer liable for any damages related to Canopy Lawn Care vehicles?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
AT ALL SUCH RISKS ARE TO BE BORNE BY LESSEE. THE VEHICLES ARE LEASED "AS IS," "WITH ALL FAULTS." All warranties made by any supplier, vendor and/or manufacturer of a Vehicle are hereby assigned by Lessor to Lessee for the applicable Term and Lessee's only remedy, if any, is against the supplier, vendor or manufacturer of the Vehicle.
- (c) None of Lessor, Servicer or any other agent of Lessor will be liable to Lessee for any liability, claim, loss, damage (direct, incidental or consequential) or expense of any kind or nature, caused directly or indirectly, by any Vehicle or any inadequacy of any Vehicle for any purpose or any defect (latent or patent) in any Vehicle or the use or maintenance of any Vehicle or any repair, servicing or adjustment of or to any Vehicle, or any delay in providing or failure to provide any Vehicle, or any interruption or loss of service or use of any Vehicle, or any loss of business or any damage whatsoever and however caused. In addition, none of Lessor, Servicer or any other agent of Lessor will have any liability to Lessee under this Agreement or under any order authorization form executed by Lessee if Lessor is unable to locate or purchase a Vehicle ordered by Lessee or for any delay in delivery of any Vehicle ordered by Lessee.
- (d) In no event shall Lessor, Servicer or any other agent of Lessor or their respective af liates be liable for consequential, indirect, incidental, special, exemplary, punitive or enhanced damages, lost pro ts or revenues or diminution in value, arising out of or relating to this Agreement, including, without limitation, any breach or performance of this Agreement, regardless of (i) whether such damages were foreseeable, (ii) whether or not Lessor, Servicer or any other agent of Lessor or their respective af liates were advised of the possibility of such damages and/or (iii) the legal or equitable theory (contract, tort or otherwise) upon which a claim, action, cause of action, demand, lawsuit, arbitration, inquiry, proceeding or litigation is based, and notwithstanding the failure of any agreed or other remedy of its essential purpose.
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- 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.
11.
Source: Item 23 — RECEIPT (FDD pages 55–199)
What This Means (2025 FDD)
According to the 2025 Canopy Lawn Care FDD, the Lessor or Servicer generally will not be liable to the franchisee (Lessee) for damages related to the vehicles. The franchisee assumes the risk of loss, theft, damage, or destruction of any vehicle, regardless of the cause. This means that Canopy Lawn Care franchisees are typically responsible for any costs associated with vehicle damage.
However, there is an exception if the franchisee's schedule includes a charge for a physical damage waiver. In this case, the Lessor assumes the risk of physical damage (collision and comprehensive) to the vehicles covered by the schedule. This waiver does not apply to damage caused by wear and tear, mechanical breakdown, or any parts/accessories added by the franchisee without the Lessor's written consent. It also does not cover damage to personal property within the vehicle.
Even with a physical damage waiver, Canopy Lawn Care franchisees are required to cooperate with the Lessor, Servicer, and insurance carriers in the investigation and defense of any claims arising from vehicle use. The Lessor can also terminate the physical damage waiver with ten days' written notice, at which point the franchisee must obtain their own insurance. The Lessor can also change the rates charged for the physical damage waiver with 30 days' written notice. Franchisees should carefully review their lease agreements and insurance policies to understand their responsibilities and coverage related to vehicle damage.