Can Augusta Lawn Care or its affiliates be designated as an approved supplier?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
roved Suppliers
While we do not currently do so, we have the right to require you to purchase any items or services necessary to operate your Franchised Business from a supplier that we approve or designate (each, an "Approved Supplier"), which may include us or our affiliate(s). If we choose to do so, we will provide you with a list of our Approved Suppliers in writing as part of the Manuals or otherwise in writing, and we may update or modify this list as we deem appropriate.
We may develop proprietary products for use in your Franchised Business, including private-label products that bear our Marks, and require you to purchase these items from us or our affiliate(s).
If you wish to purchase a product or service that we require you to purchase from an Approved Supplier from an alternate source, then you must obtain our prior written approval as outlined more fully in this Item. We may provide our standards and specifications for our Approved Products and Services directly to our Approved Suppliers, and may provide these standards and specifications to an alternative supplier you propose if: (i) we approve the supplier in writing as outlined more fully in this Item; and (ii) the alternative supplier agrees to sign our prescribed form of non-disclosure agreement with respect to any confidential information we disclose.
Except as provided above in this Item: (i) neither we nor any of our affiliates are an Approved Supplier for any items you are required to purchase in connection with your Franchised Business; and (ii) none of our officers own an interest in any of our Approved Suppliers other than us.
As of May 2023, we own and operate Copilot Software LLC, which is an approved (but not required) CRM provider to our franchisees. As of January 2025, we own and operate Mike Andes Media Group LLC, which is an approved (but not required) media provider to our franchisees. Other than this, neither we, nor people affiliated with us are Approved Suppliers. We reserve the right to designate us or any of our affiliates as an Approved Supplier with respect to any other item you must purchase in connection with your Franchised Business in the future.
Required Purchases and Right to Derive Revenue
There are no products or services we require you to purchase or lease from an Approved Supplier, or purchase or lease in accordance with our standards and specifications.
We and our affiliates reserve the right to derive revenue from any of the purchases (items or services) that our System franchisees are required to make in connection with the Franchised Business. This includes, but need not be limited to, our requirement that you use Copilot, our proprietary software. As of December 31, 2024, we received $_____ in revenue from all required purchases and leases of products and services by franchisees, including purchases of items to be resold in the Business, and rebates we receive from third-parties. This was _____ % of our total revenue of $_____, as reported in our most recent audited financial statements. Our affiliates did not receive any revenue from required purchases and leases of products and services by franchisees.
We and/or our affiliate(s) may receive payments or other compensation from Approved Suppliers or any other suppliers on account of these suppliers' dealings with us, you, or other Franchised Businesses in the System, such as rebates, commissions or other forms of compensation. We may use any amounts that we receive from suppliers for any purpose that we deem appropriate.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 17–20)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, Augusta Lawn Care has the right to designate itself or its affiliates as an approved supplier for items franchisees are required to purchase. While they do not currently require franchisees to purchase from approved suppliers, they reserve the right to do so in the future. As of May 2023, Copilot Software LLC, owned and operated by Augusta Lawn Care, is an approved (but not required) CRM provider. As of January 2025, Mike Andes Media Group LLC, also owned and operated by Augusta Lawn Care, is an approved (but not required) media provider.
Augusta Lawn Care may develop proprietary products, including private-label products bearing their marks, and require franchisees to purchase these items from them or their affiliates. If a franchisee wishes to purchase a required product or service from an alternate source other than an approved supplier, they must obtain prior written approval from Augusta Lawn Care.
Augusta Lawn Care estimates that required purchases, purchases from approved suppliers, and purchases meeting their specifications will total approximately 15-25% of the initial business establishment costs and 50-75% of ongoing operational purchases. Augusta Lawn Care also reserves the right to derive revenue from purchases franchisees are required to make, including the use of their proprietary software, Copilot. For the year ending December 31, 2024, Augusta Lawn Care received an unspecified amount of revenue from all required purchases and leases by franchisees, representing an unspecified percentage of their total revenue, as reported in their most recent audited financial statements. Augusta Lawn Care's affiliates did not receive any revenue from required purchases and leases.
Augusta Lawn Care, and/or its affiliates, may also receive compensation from approved suppliers or other suppliers through rebates, commissions, or other means. These amounts can be used for any purpose Augusta Lawn Care deems appropriate. They may also negotiate supply contracts to purchase items at prices that benefit both Augusta Lawn Care and its franchisees.