factual

For Canopy Lawn Care vehicle leases, what is the significance of the 'Schedules'?

Canopy_Lawn_Care Franchise · 2025 FDD

Answer from 2025 FDD Document

--------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------| | ("Lessor"), and the lessee whose name and address is set forth on the signature page below ("Lessee"). | |

    1. LEASE OF VEHICLES: Lessor hereby leases to Lessee and Lessee hereby leases from Lessor the vehicles (individually, a "Vehicle" and collectively, the "Vehicles") described in the schedules from time to time delivered by Lessor to Lessee as set forth below ("Schedule(s)") for the rentals and on the terms and conditions set forth in this Agreement and in the applicable Schedule. References to this "Agreement" shall include this Master Equity Lease Agreement and the various Schedules and addenda to this Master Equity Lease Agreement, each of which are incorporated herein as part of a single, unitary Agreement. Lessor will, on or about the date of delivery of each Vehicle to Lessee, send Lessee a Schedule covering the Vehicle, which will include, among other things, a description of the Vehicle, the lease term and the monthly rental and other payments due with respect to the Vehicle. The terms contained in each such Schedule will be binding on Lessee unless Lessee objects in writing to such Schedule within ten (10) days after the date of delivery of the Vehicle covered by such Schedule. Lessor is the sole legal owner of each Vehicle. This Agreement is a lease only and Lessee will have no right, title or interest in or to the Vehicles except for the use of the Vehicles as described in this Agreement. This Agreement shall be treated as a true lease for federal and applicable state income tax purposes with Lessor having all bene ts of ownership of the Vehicles. It is understood and agreed that Enterprise Fleet Management, Inc. or an af liate thereof (together with any subservicer, agent, successor or assign as servicer on behalf of Lessor, "Servicer") may administer this Agreement on behalf of Lessor and may perform the service functions herein provided to be performed by Lessor.
    1. TERM: The term of this Agreement ("Term") for each Vehicle begins on the date such Vehicle is delivered to Lessee (the "Delivery Date") and, unless terminated earlier in accordance with the terms of this Agreement, continues for the "Lease Term" as described in the applicable Schedule.

3. RENT AND OTHER CHARGES:

  • (a) Lessee agrees to pay Lessor monthly rental and other payments according to the Schedules, Open-End (Equity) Lease Rate Quotes, and this Agreement. The monthly payments will be in the amount listed as the "Total Monthly Rental Including Additional Services" on the applicable Schedule (with any portion of such amount identified as a charge for maintenance services under Section 4 of the applicable Schedule being payable to Lessor as agent for Enterprise Fleet Management, Inc.) and will be due and payable in advance on the first day of each month. Lessee agrees to pay Lessor interest charges, in connection with the acquisition of a Vehicle, for the period between the date Lessor issues payment to acquire such Vehicle and the date the Vehicle is delivered to Lessee. Such interest charges shall be included in each Schedule. If a Vehicle is delivered to Lessee on any day other than the first day of a month, monthly rental payments will begin on the first day of the next month. In addition to the monthly rental payments, Lessee agrees to pay Lessor a pro-rated rental charge for the number of days that the Delivery Date precedes the first monthly rental payment date.

Source: Item 23 — RECEIPT (FDD pages 55–199)

What This Means (2025 FDD)

According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the Schedules are a critical component of the vehicle lease agreement. These schedules, delivered by the Lessor (Enterprise FM Trust) to the Lessee (the franchisee), contain specific details about each leased vehicle. Each schedule includes a description of the vehicle, the lease term, and the monthly rental and other payments due. Franchisees must review these schedules carefully, as the terms within them become binding unless the franchisee objects in writing within ten days of the vehicle's delivery.

The monthly rental payments are detailed in the Schedules, specifying the 'Total Monthly Rental Including Additional Services.' A portion of this payment, designated as 'Depreciation Reserve' on the schedule, is set aside as a reserve for depreciation and credited against the vehicle's Delivered Price when calculating its Book Value. Additionally, the 'Total Initial Charges' and 'Service Charge Due at Lease Termination' are outlined in each Schedule, providing a clear breakdown of all costs associated with the vehicle lease.

Furthermore, if Section 4 of the Schedule includes a charge for maintenance, it indicates that the vehicle is subject to a separate maintenance agreement between Enterprise Fleet Management, Inc. and the franchisee. Canopy Lawn Care has no liability for Enterprise Fleet Management's performance under this separate maintenance agreement. The Schedules, therefore, serve as a comprehensive record of the financial and contractual obligations related to each leased vehicle, making them essential for Canopy Lawn Care franchisees to understand their lease terms fully.

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.