According to the Augusta Lawn Care franchise agreement, who is considered 'You'?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
em, products or services and You shall immediately cease to purchase from any disapproved supplier.
6. PAYMENTS BY FRANCHISEE
6.1 Initial Franchise Fee
When You sign this Agreement, You shall pay Augusta Lawn Care in cash or another form of payment that will make the funds immediately accessible to Augusta Lawn Care, such as cashier's check or wire transfer, an initial franchise fee as set forth in Exhibit A hereto (the "Initial Franchise Fee"). The Initial Franchise Fee is not refundable.
6.2 Royalties
On the 15th day of each month during the term of this Agreement, You shall pay Augusta Lawn Care a continuing royalty fee in the amount of $600 per month for year 1, and $1,600 per month thereafter.
6.3 Method and Application of Payments
You shall pay your continuing monthly royalties, advertising fees, and all other fees you are required to pay to Augusta Lawn Care, in accordance with the procedures designated by Augusta Lawn Care, which procedures Augusta Lawn Care has the discretion to change at any time upon written notice to you. Payment of royalties and fees shall be made by electronic funds transfer or direct deposit.
At no time will You sell, encumber or assign any of Your revenue stream, which includes, but is not limited to, current or future customer charges, to any other party without the prior written consent of Augusta Lawn Care.
Augusta Lawn Care has the right to apply any payment it receives from You to any past due amount You owe to Augusta Lawn Care regardless of how You indicate the payment is to be applied. Augusta Lawn Care reserves the right to change the manner in which you pay any and all fees you are required to pay to Augusta Lawn Care at any time upon written notice to you.
6.4 When Payments Begin
Your obligation to pay continuing monthly royalties (or minimum royalties) and other fees begins on the date Your Business opens for business, or three (3) months from the Effective Date of this Agreement, whichever is sooner.
6.5 Audit
Augusta Lawn Care has the right during normal working hours to audit Your books and records, including Your tax returns with respect to the Augusta Lawn Care Business.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to the 2025 Augusta Lawn Care Franchise Disclosure Document, the term 'You' refers to the franchisee. This is explicitly stated in several sections outlining the franchisee's rights, obligations, and conditions within the franchise agreement. For instance, the agreement details payments the franchisee ('You') must make, such as the initial franchise fee and ongoing royalties. It also specifies how 'You' should use Augusta Lawn Care's trade name and marks, and outlines the conditions under which 'You' may transfer the franchise.
This definition is crucial because it clarifies who is bound by the terms and conditions of the franchise agreement. Whether it's about making payments, adhering to operational standards, or fulfilling other obligations, 'You' clearly identifies the franchisee as the responsible party. This ensures that the franchisee understands their role and responsibilities within the Augusta Lawn Care franchise system.
Furthermore, the agreement emphasizes that the rights and duties are personal to 'You,' indicating that Augusta Lawn Care has granted the franchise based on the franchisee's skills, financial capacity, and character. If the franchisee is a corporation, partnership, or limited liability company, 'You' extends to the principals of that entity. This ensures that the individuals behind the business also understand and are committed to the franchise agreement's terms.