For Canopy Lawn Care, where must mediation and arbitration take place?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
ed Lawn Care Business. |
| Provision | Section in Franchise Agreement or Other Agreement | Summary |
|---|---|---|
| s. Modification of the agreement | Sections 2.3, 7.3 & 21.11 of Franchise Agreement | Franchise Agreement: No modifications of Franchise Agreement during term generally, but Operating Manual subject to change. Modifications permitted on renewal. |
| t. Integration/merger clause | Section 21.5 of Franchise Agreement | Only the terms of the franchise agreement are binding (subject to state law). Any representations or promises outside of the disclosure document, franchise agreement may not be enforceable. |
| u. Dispute resolution by arbitration or mediation | Section 20 of Franchise Agreement | Except for certain claims, all disputes must first be submitted to non-binding mediation, and if unsuccessful, then arbitrated in Virginia, subject to state law |
| v. Choice of forum | Sections 20.1 & 21.1 | Mediation and arbitration must be in Virginia, subject to state law |
| w. Choice of law | Sections 20.1 & 21.1 of Franchise Agreement | Virginia law applies, subject to state law. |
EXHIBIT E
CANOPY FRANCHISE CORPORATION STATE-SPECIFIC ADDENDA
CALIFORNIA ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT
To the extent the California Franchise Investment Law, Cal. Corp. Code §§ 31000-31516 or the California Franchise Relations Act, Cal. Bus. & Prof. Code §§20000-20043 applies, the terms of this Addendum apply.
Registration of this franchise does not constitute approval, recommendation, or endorsement by the Commissioner of the Department of Financial Protection and Innovation.
THE CALIFORNIA FRANCHISE INVESTMENT LAW REQUIRES THAT A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE BE DELIVERED TOGETHER WITH THE DISCLOSURE DOCUMENT.
OUR WEBSITE HAS NOT BEEN REVIEWED OR APPROVED BY THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION AND COMPLAINTS CONCERNING THE CONTENTS OF THIS WEBSITE MAY BE DIRECTED TO THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION AT WWW.DFPI.CA.GOV. THE FRANCHISOR'S WEBSITE ADDRESS IS WWW.CANOPYLAWNCARE.COM
SECTION 31125 OF THE CALIFORNIA CORPORATIONS CODE REQUIRES US TO GIVE YOU A DISCLOSURE DOCUMENT, IN A FORM CONTAINING THE INFORMATION THAT THE COMMISSIONER MAY BY RULE OR ORDER REQUIRE, BEFORE A SOLICITATION OF A PROPOSED MATERIAL MODIFICATION OF AN EXISTING FRANCHISE.
Item 3, Additional Disclosure:
Neither we nor any person described in Item 2 of the Disclosure Document is subject to any currently effective order of any National Securities Association or National Securities Exchange, as defined in the Securities Exchange Act of 1934, 15 U.S.C.A. 78a et seq. suspending or expelling such persons from membership in such association or exchange.
Item 6, Additional Disclosure:
The highest interest rate allowed by law in California is 10% annually.
Item 17, Additional Disclosures:
The franchise agreement requires franchisee to execute a general release of claims upon renewal or transfer of the franchise agreement.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 45–47)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the standard franchise agreement stipulates that mediation and arbitration proceedings must occur in Virginia. However, this is subject to state law, which means that this requirement may be superseded depending on the franchisee's location.
For instance, the Washington Addendum specifies that for franchises purchased in Washington, the arbitration or mediation site will be either in the state of Washington or in a location mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator. Similarly, the Illinois Addendum indicates that while a franchise agreement may provide for arbitration outside of Illinois, any provision designating jurisdiction or venue outside the State of Illinois is void under Illinois law.
Therefore, prospective Canopy Lawn Care franchisees should be aware that the location for dispute resolution can vary. It is crucial to review the state-specific addendum applicable to their location to understand their rights and obligations regarding mediation and arbitration. Franchisees should consult with a legal professional to fully understand the implications of these clauses in their specific circumstances.