May Augusta Lawn Care derive income from an Augusta Lawn Care franchisee's purchases from approved suppliers?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Augusta Lawn Care may receive payments and/or other compensation from approved suppliers in any form on account of such suppliers dealing with You and/or other franchisees, and Augusta Lawn Care may use all amounts so received for any purpose Augusta Lawn Care deems appropriate. You acknowledge and agree that Augusta Lawn Care shall have the right to collect and retain all manufacturing allowances, marketing allowances, rebates, credits, monies, payments, or benefits (collectively. Allowances") offered by suppliers to You or to Augusta Lawn Care or its affiliates based upon Your purchases of Proprietary Services, products and other goods and services. You assign to Augusta Lawn Care or its designee all of Your right, title and interest in, and to any and all such Allowances and authorize Augusta Lawn Care or its designee to collect and retain any or all such Allowances without restriction.
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 right to receive payments or other compensation from approved suppliers based on the franchisee's dealings with those suppliers. Augusta Lawn Care can use these amounts for any purpose it deems appropriate. This arrangement allows Augusta Lawn Care to benefit financially from the purchasing activities of its franchisees.
Augusta Lawn Care also has the right to collect and retain all manufacturing allowances, marketing allowances, rebates, credits, monies, payments, or benefits offered by suppliers based on the franchisee's purchases of proprietary services, products, and other goods and services. The franchisee assigns all rights and interest in these allowances to Augusta Lawn Care, authorizing Augusta Lawn Care to collect and retain them without restriction. This means that any discounts, rebates, or other financial incentives offered by suppliers based on a franchisee's purchases will be directed to Augusta Lawn Care.
As an Augusta Lawn Care franchisee, you are obligated to use only approved suppliers and to purchase designated products and services. Augusta Lawn Care may change the list of approved suppliers and can also revoke approval of particular items, services, products, or suppliers at its discretion. If approval is revoked, the franchisee must immediately cease purchasing from the disapproved supplier and discontinue using the disapproved items. Augusta Lawn Care also reserves the right to become an approved supplier or the only supplier for any item, product, good, and/or service at any time, potentially impacting the franchisee's sourcing options and costs.