In what forms can Augusta Lawn Care derive income from franchisee purchases?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
em, products or services and You shall immediately cease to purchase from any disapproved supplier.
6. PAYMENTS BY FRANCHISEE
6.1 Initial Franchise Fee
When You sign this Agreement, You shall pay Augusta Lawn Care in cash or another form of payment that will make the funds immediately accessible to Augusta Lawn Care, such as cashier's check or wire transfer, an initial franchise fee as set forth in Exhibit A hereto (the "Initial Franchise Fee"). The Initial Franchise Fee is not refundable.
6.2 Royalties
On the 15th day of each month during the term of this Agreement, You shall pay Augusta Lawn Care a continuing royalty fee in the amount of $600 per month for year 1, and $1,600 per month thereafter.
6.3 Method and Application of Payments
You shall pay your continuing monthly royalties, advertising fees, and all other fees you are required to pay to Augusta Lawn Care, in accordance with the procedures designated by Augusta Lawn Care, which procedures Augusta Lawn Care has the discretion to change at any time upon written notice to you. Payment of royalties and fees shall be made by electronic funds transfer or direct deposit.
At no time will You sell, encumber or assign any of Your revenue stream, which includes, but is not limited to, current or future customer charges, to any other party without the prior written consent of Augusta Lawn Care.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, the company receives income from franchisees through several avenues. These include an initial franchise fee, which is paid when the franchise agreement is signed and is non-refundable. Additionally, franchisees are required to pay continuing royalty fees. These royalty fees are set at $600 per month for the first year and increase to $1,600 per month thereafter.
Franchisees must also pay advertising fees and any other fees as required by Augusta Lawn Care, following the procedures the company designates. These payments are typically made via electronic funds transfer or direct deposit. Augusta Lawn Care retains the right to modify these payment procedures with written notice to the franchisee. The obligation to pay these continuing royalties and other fees begins when the franchisee's business opens or three months from the agreement's effective date, whichever comes first.
Augusta Lawn Care also has the right to apply any payment received from a franchisee to any past due amounts owed, regardless of how the franchisee intended the payment to be applied. This ensures that Augusta Lawn Care can manage and reconcile franchisee accounts effectively. Overall, these payment structures provide Augusta Lawn Care with consistent revenue streams throughout the term of the franchise agreement.