When must an Augusta Lawn Care franchisee procure the required insurance policies?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
You shall procure, prior to the commencement of any activities or operations under this Agreement, and shall maintain in full force and effect at all times during the term of this Agreement (and for such period thereafter as is necessary to provide the coverages required hereunder for events having occurred during the term of this Agreement), at Your expense, an insurance policy or policies protecting You, Augusta Lawn Care, and their respective officers, directors, partners, agents and employees against any demand or claim with respect to personal injury, death or property damage, business interruption, or any loss, liability or expense whatsoever arising or occurring upon or in connection with the Business, including, but not limited to, comprehensive general liability insurance, property insurance (including, but not limited to, fire, vandalism, and malicious mischief insurance for the replacement value of the Augusta Lawn Care Business and its contents), casualty insurance, business interruption insurance, statutory workers' compensation insurance, employer's liability insurance, product liability insurance, and automobile insurance coverage for all vehicles used in connection with the operation of Business, if applicable. Such policy or policies shall be written by a responsible carrier or carriers acceptable to Augusta Lawn Care, shall name Augusta Lawn Care and its subsidiaries and affiliates as additional insureds, shall provide for Augusta Lawn Care to receive notice upon cancellation or any event of default, including non-payment, and shall provide at least the types and minimum amounts of coverage specified in the Manual. Augusta Lawn Care shall have the right, from time-to-time, to make such
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, a franchisee must procure the required insurance policies before commencing any activities or operations under the Franchise Agreement. These policies must remain in full force and effect throughout the term of the agreement and for any period necessary to cover events that occurred during the agreement's term.
The required insurance coverage is designed to protect the franchisee, Augusta Lawn Care, and their respective officers, directors, partners, agents, and employees against various claims and liabilities. This includes personal injury, death, property damage, business interruption, and any loss, liability, or expense related to the business. Specific types of insurance include comprehensive general liability, property insurance, casualty insurance, business interruption insurance, statutory workers' compensation, employer's liability insurance, product liability insurance, and automobile insurance coverage for all vehicles used in the business.
The insurance policies must be written by a carrier acceptable to Augusta Lawn Care and must name Augusta Lawn Care and its subsidiaries and affiliates as additional insureds. The policies must also provide for Augusta Lawn Care to receive notice upon cancellation or any event of default, including non-payment. Furthermore, franchisees must deliver Certificates of Insurance to Augusta Lawn Care before commencing operations and at least thirty days before the expiration of any policy, evidencing the proper types and minimum amounts of coverage. These certificates must provide at least thirty days' prior written notice to Augusta Lawn Care in the event of material alteration or cancellation of coverage.
If a franchisee fails to procure or maintain the required insurance, Augusta Lawn Care has the right, but not the obligation, to procure and maintain such insurance in the franchisee's name and charge the costs, including reasonable expenses, to the franchisee. This is in addition to any other remedies Augusta Lawn Care may have under the agreement or at law or in equity. Franchisees must also ensure that all public liability and property damage policies contain a provision that Augusta Lawn Care is entitled to recover under such policies for any loss occasioned by the negligence of the franchisee or their agents or employees, even if Augusta Lawn Care is not named as an insured.