Does the definition of 'Transfer' for an Augusta Lawn Care franchise include a transfer through divorce?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
"Transfer" means any direct or indirect transfer, pledge, encumbrance, sale, gift, hypothecation, mortgage, sublicense, transfer through bequest or inheritance, transfer in trust, divorce or by operation of law or by any other means, or disposition of (i) any of the rights granted under this Agreement (ii) any part of this Agreement, (in) any rights or privileges incidental to this Agreement, (iv) the Business or any interest therein, or (v) any ownership interest in you, including, without limitation, any arrangement whereby you sell or pledge accounts receivable or any other assets of the Franchised Business (each a "Transfer").
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to the 2025 Augusta Lawn Care Franchise Disclosure Document, the definition of "Transfer" does include transfers due to divorce. The FDD states that a transfer includes any direct or indirect transfer, pledge, encumbrance, sale, gift, hypothecation, mortgage, sublicense, transfer through bequest or inheritance, transfer in trust, divorce or by operation of law or by any other means, or disposition of (i) any of the rights granted under this Agreement (ii) any part of this Agreement, (in) any rights or privileges incidental to this Agreement, (iv) the Business or any interest therein, or (v) any ownership interest in you.
This means that if an Augusta Lawn Care franchisee goes through a divorce and a portion of the franchise or its assets are transferred to a spouse as part of the divorce settlement, it is considered a transfer under the franchise agreement. As such, the franchisee would need to comply with the transfer provisions outlined in the agreement, including obtaining Augusta Lawn Care's consent.
Augusta Lawn Care requires that the franchisee notify them in writing of any proposed transfer of the agreement, any direct or indirect interest in the franchisee, or in all or substantially all of the assets of the Augusta Lawn Care business, at least 30 days before the transfer is proposed to take place. Augusta Lawn Care will not unreasonably withhold its consent to any transfer. They may require certain conditions to be met, such as satisfying all accrued monetary obligations, not being in default of any provision of the agreement, and obtaining a general release from the transferor.