What is the duration of the Principal Owner's Guaranty for Augusta Lawn Care?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
If You are a corporation, all officers and shareholders, or, if You are a partnership, all Your general partners, or, if You are a limited liability company, all Your members, shall approve this Agreement, permit You to furnish the financial information required by Augusta Lawn Care , and agree to the restrictions placed on them including restrictions on the transferability of their interests in the franchise and the Augusta Lawn Care Business and limitations on their rights to compete, and sign separately a Guaranty, guaranteeing Your payments and performance. Where required to satisfy our standards of creditworthiness, or to secure the obligations made under this Agreement, You may be asked to sign the Guaranty. Our form of Guaranty appears as Exhibit C to this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to the 2025 Augusta Lawn Care FDD, if the franchisee is a corporation, partnership, or limited liability company, all officers and shareholders (for a corporation), general partners (for a partnership), or members (for an LLC) must sign a Guaranty. This guaranty ensures the franchisee's payments and performance under the Franchise Agreement. The FDD does not explicitly state the duration of this guaranty.
However, the document mentions that when a franchise is transferred, the transferee's principal may be required to guarantee the performance of all obligations under the new franchise agreement for a term ending on the expiration date of the agreement, including any renewal terms. This suggests that the guaranty typically lasts for the duration of the franchise agreement, including renewals.
Since the FDD does not provide a specific duration for the Principal Owner's Guaranty, it is important for a prospective franchisee to clarify this point with Augusta Lawn Care. Understanding the exact term of the guaranty is crucial, as it defines the period during which the principal owner(s) are personally liable for the franchise's obligations.