factual

Does the Minnesota Addendum to the Canopy Lawn Care Franchise Agreement apply to all franchisees, or only those in Minnesota?

Canopy_Lawn_Care Franchise · 2025 FDD

Answer from 2025 FDD Document

CHISE CORPORATION Its: Its:

MINNESOTA ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT

To the extent the Minnesota Franchise Act, Minn. Stat. §§80C.01 – 80C.22 applies, the terms of this Addendum apply.

State Cover Page and Item 17, Additional Disclosures:

Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prohibit us from requiring litigation to be conducted outside of Minnesota, requiring waiver of a jury trial or requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in the Disclosure Document shall abrogate or reduce any of your rights as provided for in Minn. Stat. Sec. 80C, or your rights to any procedure, forum or remedies provided for by the laws of the jurisdiction.

Franchisee cannot consent to the franchisor obtaining injunctive relief. The franchisor may seek injunctive relief. A court will determine if a bond is required.

Item 6, Additional Disclosure:

NSF checks are governed by Minn. Stat. 604.113, which puts a cap of $30

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 45–47)

What This Means (2025 FDD)

According to the 2025 Canopy Lawn Care Franchise Disclosure Document, the Minnesota Addendum to the Franchise Agreement applies specifically to franchisees operating in Minnesota. The addendum states that its terms apply "To the extent the Minnesota Franchise Act, Minn. Stat. §§80C.01 – 80C.22 applies". This indicates that the provisions within the addendum are designed to ensure compliance with Minnesota state laws regarding franchising.

Several specific clauses within the Minnesota Addendum address legal considerations unique to Minnesota. For example, the addendum modifies sections of the Franchise Agreement related to covenants, specifying that the franchisee "has, or has made firm arrangements to acquire funds to commence, open and operate the Business." It also addresses issues such as litigation venues, jury trial waivers, and limitations on damages, all within the context of Minnesota law. Additionally, the addendum caps service charges for NSF checks at $30, in accordance with Minn. Stat. 604.113.

For a prospective Canopy Lawn Care franchisee, this means that if they plan to operate in Minnesota, the Minnesota Addendum will be integrated into their Franchise Agreement, superseding conflicting terms in the standard agreement. Franchisees operating outside of Minnesota would not have this addendum applied to their agreements, as similar addenda exist for other states like New York, North Dakota, Rhode Island, and Virginia, each tailored to their respective state laws. Therefore, it is crucial for franchisees to understand the specific addendum that applies to their operating location to ensure compliance with local regulations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.