Under what conditions can [ENTITY NOTEHOLDER] terminate the Franchise Agreement for Canopy Lawn Care?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
of the delinquent payment at the rate of 18% (default rate) per year (or if this rate exceeds the maximum permitted by law, then the interest rate will be the highest rate permitted by law); and
- B. To pay holders actual attorneys' fees and costs incurred in collection efforts as a result of the default.
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- In the event a default exists after the 10-day notice period as provided above in paragraph 6, [ENTITY NOTEHOLDER] may in addition elect to terminate and cancel the Franchise Agreement(s) between [ENTITY NOTEHOLDER] and maker described in paragraph 8 below in accordance with the provisions of that agreement(s).
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- This Note constitutes part performance of a certain written Franchise Agreement(s) between maker and [ENTITY NOTEHOLDER] dated [DATE OF FRANCHISE AGREEMENT(S)] and as such, will be read and interpreted in a manner consistent with the terms of said agreement. Default under the terms of this Note will be sufficient grounds for termination or cancellation of the Franchise Agreement(s) in accordance with the terms of the Franchise Agreement(s).
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Source: Item 23 — RECEIPT (FDD pages 55–199)
What This Means (2025 FDD)
According to the 2025 Canopy Lawn Care FDD, [ENTITY NOTEHOLDER] has the right to terminate the Franchise Agreement under specific conditions related to defaults and the Promissory Note. If a default remains uncured after a 10-day notice period, [ENTITY NOTEHOLDER] can choose to terminate the Franchise Agreement.
Furthermore, the FDD states that the Promissory Note is part of the Franchise Agreement. Therefore, any default under the terms of the Promissory Note provides sufficient grounds for [ENTITY NOTEHOLDER] to terminate or cancel the Franchise Agreement, aligning with the terms outlined in the Franchise Agreement itself.
Additionally, if the franchisee sells, transfers, assigns, encumbers, or conveys any rights, duties, or obligations under the Franchise Agreement, the entire unpaid principal and interest balances of the Promissory Note become immediately due and payable. This clause protects [ENTITY NOTEHOLDER]'s financial interests in case of changes in the franchisee's business ownership or structure. These conditions are important for prospective franchisees to understand, as they outline the circumstances under which their franchise agreement could be terminated due to financial or operational defaults.