Does the Augusta Lawn Care definition of 'Related Party' include shareholders owning an interest in Augusta Lawn Care?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
"Related Party" or "Related Parties" means persons and companies affiliated with Augusta Lawn Care or You, as the context indicates, including, but not limited to, owners (as defined herein), general partners, limited partners, shareholders, or members, owning an interest in (i) Augusta Lawn Care or in You; (ii) corporations or limited liability companies in which Augusta Lawn Care or You have an interest; (iii) corporations or limited liability companies in which any person or entity owning an interest in You also has an interest; or (iv) officers, directors, members, or agents of Augusta Lawn Care or of You
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, the definition of 'Related Party' includes shareholders owning an interest in Augusta Lawn Care. The FDD specifies that 'Related Party' includes persons and companies affiliated with Augusta Lawn Care, including owners, general partners, limited partners, shareholders, or members owning an interest in Augusta Lawn Care.
This definition is important for prospective franchisees because it clarifies the scope of relationships that could be subject to certain obligations or restrictions under the franchise agreement. For example, the actions or omissions of related parties could impact the franchisee's responsibilities and potential liabilities.
Specifically, the definition extends not only to direct owners and shareholders but also to entities in which Augusta Lawn Care or the franchisee has an interest, as well as the officers, directors, members, or agents of Augusta Lawn Care or the franchisee. This broad definition ensures that all parties closely associated with either Augusta Lawn Care or the franchisee are considered 'Related Parties' under the agreement.