What sections of the agreement specify the amounts owed for a Totaled Vehicle for Canopy Lawn Care?

According to Canopy Lawn Care's 2025 Franchise Disclosure Document, if a vehicle is declared a "Totaled Vehicle" due to being lost, stolen, destroyed, or damaged beyond repair, the franchisee (Lessee) is obligated to pay Canopy Lawn Care (Lessor) the amounts owed under Sections 3(b) and 3(c). This payment must be made no later than 30 days after the date of the casualty occurrence, at which point the agreement terminates specifically for that vehicle.

Section 3(b) addresses scenarios where the term for a vehicle ends prematurely due to franchisee default, a casualty occurrence, or any other reason. In such cases, the rentals and management fees paid by the franchisee will be recalculated using the rule of 78's, and the adjusted amount becomes payable to Canopy Lawn Care on the termination date. This recalculation ensures that Canopy Lawn Care is compensated appropriately for the early termination of the lease agreement.

Section 3(c) stipulates that at the end of the term for each vehicle, the franchisee must pay Canopy Lawn Care additional rent equal to the excess, if any, of the Book Value of the vehicle over the greater of (i) the wholesale value of such vehicle as determined by Canopy Lawn Care in good faith or (ii) twenty percent of the Delivered Price of such vehicle. The "Book Value" of a Vehicle means the sum of (i) the "Delivered Price" of the Vehicle as set forth in the applicable Schedule minus (ii) the total Depreciation Reserve paid by Lessee to Lessor with respect to such Vehicle plus (iii) all accrued and unpaid rent and/or other amounts owed by Lessee with respect to such Vehicle. These sections outline the financial responsibilities of the franchisee in the event of a totaled vehicle, ensuring Canopy Lawn Care is compensated for the loss or damage.