Can Augusta Lawn Care assign its option to purchase the business after termination to another party?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- (g) Augusta Lawn Care, or its designee, has an option to purchase the business from You, including but not limited to any or all of the physical assets of the Augusta Lawn Care Business, including its equipment, supplies and inventory, during a period of sixty (60) days following the effective date of termination.
If Augusta Lawn Care notifies You that it (or its designee) wishes to purchase the assets of the business from You following Termination of this Agreement, You must immediately surrender possession of the Augusta Lawn Care Business to Augusta Lawn Care or Its designee upon demand.
Augusta Lawn Care or its designee will operate the Augusta Lawn Care Business at its expense pending determination of the purchase price as set forth below.
The equipment, supplies, and inventory will be valued as follows:
- i.
The lower of depreciated value or fair market value of the equipment supplies and inventory; and
ii. Depreciated value of other tangible personal property calculated on the straight-line method over a five (5) year life, less any liens or encumbrances.
Augusta Lawn Care must send written notice to You within thirty (30) days after termination of this Agreement of its (or its designee s) election to exercise the option to purchase. If the parties do not agree on a price within the option period, the option period may be extended for up to fifteen (15) business days to permit appraisal by an independent appraiser who is mutually satisfactory to the parties. If the parties fail to agree upon an appraiser within the specified period, each will appoint an appraiser and the two appraisers thus appointed must agree on a third appraiser within ninety (90) days after termination who must determine the price for the physical assets of the Augusta Lawn Care Business in accordance with the standards specified above. This determination will be final and binding upon both Augusta Lawn Care, or Augusta Lawn Care's designee, as applicable, and You.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, Augusta Lawn Care has the option to purchase the franchisee's business assets after termination, and it can assign this option to another party, referred to as "its designee". This means that instead of Augusta Lawn Care directly purchasing the business, they can have another entity (a third party) do so.
If Augusta Lawn Care, or its designee, decides to purchase the assets, the franchisee must surrender possession of the Augusta Lawn Care business upon demand. Augusta Lawn Care or its designee will then operate the business at their own expense while the purchase price is being determined. The purchase price will be determined based on the depreciated value or fair market value of the equipment, supplies, and inventory.
Augusta Lawn Care must provide written notice within 30 days after termination of the agreement if they or their designee intend to exercise this purchase option. If both parties cannot agree on a price, an independent appraiser will determine the price, which will be binding. Augusta Lawn Care also has the right to exclude any assets that are not reasonably necessary for the operation of the business or do not meet their current standards. This right to assign the purchase option provides Augusta Lawn Care with flexibility in how they handle a terminated franchise, potentially allowing them to maintain operations in the territory through another entity.