What is the effect of deleting subsection 4.5.2(e) in the Augusta Lawn Care franchise agreement?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Under Section 4.5.2 of the Agreement, under the heading "Renewal," the subsection 4.5.2(e) shall be deleted in its entirety and shall have no force or effect, and the following shall be substituted in lieu thereof:
- 4.6.2(e) You shall execute a general release, in a form satisfactory to Us, with respect to any and all claims, known or unknown, that You might have against Us or our subsidiaries, or affiliates, or their respective officers, directors, agents, or employees, provided, however, that all rights enjoyed by You and any causes of action arising in Your favor from the provisions of New York General Business Law Sections 680-695, and the regulations issued thereunder, shall remain in force, it being the intent of this provision that the non-waiver provisions of New York General Business Law Sections 687.4 and 687.5 be satisfied.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to the 2025 Augusta Lawn Care Franchise Disclosure Document, subsection 4.5.2(e) of the franchise agreement, under the heading "Renewal," is deleted in its entirety and has no force or effect. In its place, a new subsection 4.6.2(e) is substituted. This change pertains to the general release that a franchisee must execute to renew their franchise agreement.
The substituted subsection 4.6.2(e) requires the franchisee to execute a general release, in a form satisfactory to Augusta Lawn Care, covering any and all claims, known or unknown, that the franchisee might have against Augusta Lawn Care, its subsidiaries, affiliates, or their respective officers, directors, agents, or employees. However, this release does not waive any rights or causes of action arising from the provisions of New York General Business Law Sections 680-695 and the regulations issued thereunder. This ensures compliance with the non-waiver provisions of New York General Business Law Sections 687.4 and 687.5.
In practical terms, this means that while Augusta Lawn Care franchisees must generally release the company from potential claims to renew their franchise, they retain specific protections under New York law if applicable. This amendment primarily affects franchisees operating or domiciled in New York, as it preserves their rights under the New York General Business Law, while franchisees in other states may have different or no such specific protections. Prospective franchisees should consult with a legal professional to understand the full implications of this clause and how it affects their rights, especially if they are located in or plan to operate in New York.