How does Augusta Lawn Care estimate the stand-alone selling price of pre-opening activities?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- (g) Augusta Lawn Care, or its designee, has an option to purchase the business from You, including but not limited to any or all of the physical assets of the Augusta Lawn Care Business, including its equipment, supplies and inventory, during a period of sixty (60) days following the effective date of termination.
If Augusta Lawn Care notifies You that it (or its designee) wishes to purchase the assets of the business from You following Termination of this Agreement, You must immediately surrender possession of the Augusta Lawn Care Business to Augusta Lawn Care or Its designee upon demand.
Augusta Lawn Care or its designee will operate the Augusta Lawn Care Business at its expense pending determination of the purchase price as set forth below.
The equipment, supplies, and inventory will be valued as follows:
- i.
The lower of depreciated value or fair market value of the equipment supplies and inventory; and
ii. Depreciated value of other tangible personal property calculated on the straight-line method over a five (5) year life, less any liens or encumbrances.
Augusta Lawn Care must send written notice to You within thirty (30) days after termination of this Agreement of its (or its designee s) election to exercise the option to purchase. If the parties do not agree on a price within the option period, the option period may be extended for up to fifteen (15) business days to permit appraisal by an independent appraiser who is mutually satisfactory to the parties. If the parties fail to agree upon an appraiser within the specified period, each will appoint an appraiser and the two appraisers thus appointed must agree on a third appraiser within ninety (90) days after termination who must determine the price for the physical assets of the Augusta Lawn Care Business in accordance with the standards specified above. This determination will be final and binding upon both Augusta Lawn Care, or Augusta Lawn Care's designee, as applicable, and You.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Augusta Lawn Care has the option to purchase the franchisee's business, including physical assets like equipment, supplies, and inventory, within 60 days after the franchise agreement terminates.
To determine the purchase price, Augusta Lawn Care will assess the equipment, supplies, and inventory at the lower of either their depreciated value or their fair market value. Other tangible personal property will be valued at its depreciated value, calculated using the straight-line method over a five-year life, minus any existing liens or encumbrances.
If Augusta Lawn Care and the franchisee can't agree on a price within the initial option period, they can extend it by up to 15 business days to allow for an independent appraisal. If they still can't agree on an appraiser, each party will appoint their own, and those two appraisers will then choose a third to determine the final price. This third appraiser must be selected within 90 days after termination, and their decision on the physical assets' price will be binding for both Augusta Lawn Care and the franchisee.