When must an Augusta Lawn Care franchisee furnish Augusta Franchise LLC with a certificate of insurance?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Insurance
You must obtain and maintain insurance, at your expense, as we require, in addition to any other insurance required by applicable law, your landlord, or otherwise. We may periodically change the amounts of coverage required under the insurance policies and require different or additional kinds of insurance, to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances, if the changes apply to all Augusta Lawn Care Businesses. Each insurance policy must name us and entities and persons affiliated with us as additional insureds. On our request, you must provide us with copies of all insurance policies together with proof of payment for insurance. You must send to us current certificates of insurance and copies of all insurance policies on an annual basis. Before you open your Augusta Lawn Care Business, you must furnish us with a certificate of insurance showing compliance with the insurance requirements.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 17–20)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, a franchisee must furnish Augusta Franchise LLC with a certificate of insurance before opening their Augusta Lawn Care Business. Additionally, franchisees must send current certificates of insurance and copies of all insurance policies on an annual basis. The franchisee is responsible for obtaining and maintaining the required insurance at their own expense. Augusta Lawn Care may periodically change the required coverage amounts or require different or additional kinds of insurance. These changes could be due to inflation, new risks, changes in law, higher damage awards, or other relevant changes, provided these changes apply to all Augusta Lawn Care businesses.
Each insurance policy must name Augusta Franchise LLC and its affiliates as additional insureds. This requirement ensures that the franchisor is protected from potential liabilities arising from the franchisee's operations. The franchisee must also provide Augusta Lawn Care with copies of all insurance policies, along with proof of payment, upon request.
The minimum insurance requirements currently include general liability insurance with $500,000 per occurrence and $1,000,000 in the aggregate. It is important for prospective franchisees to understand these insurance obligations, as they represent a significant ongoing cost of operating an Augusta Lawn Care franchise. Failing to maintain adequate insurance coverage could result in a breach of the franchise agreement and potential legal and financial repercussions.
Franchisees should consult with an insurance professional to ensure they obtain the appropriate coverage and understand the terms and conditions of their policies. They should also stay informed of any changes to the insurance requirements communicated by Augusta Lawn Care to remain compliant with the franchise agreement.