Is the liability of a Canopy Lawn Care franchise guarantor joint and several?

According to the 2025 Canopy Lawn Care FDD, if the franchise is owned by multiple entities or individuals, their liability under the agreement is joint and several. This means that each individual or entity is fully responsible for all the obligations and debts of the franchise. Canopy Lawn Care can pursue any one or all of the franchisees for the full amount owed, regardless of their individual share of ownership or responsibility.

For a prospective Canopy Lawn Care franchisee, this has significant implications. If you are entering into a franchise agreement with partners or as part of a corporate entity, it is crucial to understand that you could be held personally liable for the entire debt or obligation, even if the default was primarily the fault of another partner or the entity itself. This arrangement protects Canopy Lawn Care by ensuring they can recover the full amount owed without having to pursue each party separately or allocate responsibility.

This type of liability structure is relatively common in franchising, as it provides franchisors with a greater degree of financial security. However, it also increases the risk for individual franchisees, particularly those who are part of a larger ownership group. It would be prudent for prospective Canopy Lawn Care franchisees to seek legal and financial advice to fully understand the implications of joint and several liability and to consider appropriate risk management strategies, such as insurance or indemnity agreements with co-owners.