What is the Franchisor's role in the transfer of an Augusta Lawn Care franchise agreement?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
ee of Augusta Lawn Care shall become solely responsible for all obligations of Augusta Lawn Care under this Agreement from the date of assignment. You shall execute such documents or attornment, or other documents, as Augusta Lawn Care may request.
9.2 Franchisee's Condition Right to Transfer
You understand and acknowledge that the rights and duties set forth in this Agreement are personal to You, and that Augusta Lawn Care has granted this franchise in reliance of Your (or, if You are a corporation, partnership, or limited liability company, your principals) business skill, financial capacity and personal character. Accordingly, neither You nor any immediate or remote successor to any part of Your interest in this Agreement, nor any individual, partnership, limited liability company, corporation or other legal entity, which directly or indirectly owns any interest in You, shall sell, assign, transfer, convey, pledge, encumber, merge or give away (collectively, "transfer") this Agreement, any direct or indirect interest in You, or in all or substantially all of the assets of the Franchise without prior written consent of Augusta Lawn Care Any purported assignment or transfer not having the written consent of Augusta Lawn Care, required by Section 9.3, shall be null and void and shall constitute a material breach of this Agreement, for which Augusta Lawn Care may immediately terminate without opportunity to cure pursuant to Section 10.2.1 of this Agreement. The foregoing remedies shall be in addition to any other remedies Augusta Lawn Care may have under this Agreement or at law or in equity.
9.3 Conditions of Transfer
Franchisee shall notify Augusta Lawn Care in writing of any proposed transfer of this Agreement, any direct or indirect interest in You, or in all or substantially all of the assets of Augusta Lawn Care Business, at least thirty (30) days before such transfer is proposed to take place. Augusta Lawn Care shall not unreasonably withhold its consent to any transfer. Augusta Lawn Care may, in its sole discretion, require any or all of the following as conditions of its approval:
(a) That all of Your accrued monetary obligations and all other outstanding obligations to Franchisor and its affiliates have been satisfied;
(b) That You are not in default of any provision of this Agreement, any amendment or addendum hereof or successor hereto, or any other agreement between You and Augusta Lawn Care or its affiliates;
(c) That the transferor shall have executed a general release, in a form prescribed by Augusta Lawn Care, of any and all claims against Augusta Lawn Care and its
affiliates, and their respective officers, directors, agents, shareholders, and employees;
(d) That the transferor (and, if the transferee is other than an individual, such owners of a beneficial interest in the transferee as Augusta Lawn Care may request) demonstrate to Augusta Lawn Care's satisfaction that it meets Augusta Lawn Care's educational, managerial and business standards; possesses a good moral character, business reputation and credit rating; has the aptitude and ability to operate the Augusta Lawn Care Business (as may be evidenced by prior related business experience or otherwise); and has adequate financial resources and capital to operate the Augusta Lawn Care Business, taking into consideration the purchase price paid by the transferee for the Augusta Lawn Care Business;
(e) That (1) at Augusta Lawn Care's option, (a) the transferee (and, if the transferee is other than an individual, such owners of a beneficial interest in the transferee as Augusta Lawn Care may request) enter into a written assignment, in a form satisfactory to Augusta Lawn Care, assuming and agreeing to discharge all of Your obligations under this Agreement, or (b) the transferee(s) execute, for a term ending on the expiration date of this Agreement and with such renewal term(s) as may be provided by this Agreement, the Augusta Lawn Care's then-current form of franchise agreement and other ancillary agreements as Franchisor may require for the Augusta Lawn Care Business, which agreements shall supersede this Agreement in all respects, and the terms of which may differ from the terms of this Agreement, including, without limitation, higher royalty fees, advertising contributions, or other fees, and a smaller or modified Territory, except that the transferee shall not be required to pay any initial franchise fee; and (2) the transferee's principal guaranty the performance of all such obligations in writing in a form satisfactory to Augusta Lawn Care;
(f) That You remain liable for all of the obligations to Augusta Lawn Care in connection with the Augusta Lawn Care Business which arose prior to the effective date of the transfer and execute any and all instruments reasonably requested by Augusta Lawn Care to evidence such liability;
(g) That the transferee (or, if the transferee is a corporation, partnership or limited liability company, a principal of the transferee acceptable to Augusta Lawn Care) and the transferee's manager (if transferee or transferee's principal will not manage the Augusta Lawn Care Business), at the transferee's expense, have successfully completed any training programs then in effect upon such terms and conditions as Augusta Lawn Care may reasonably require and pay Augusta Lawn Care the thencurrent training fee;
(h) Augusta Lawn Care approves the terms and conditions of the transfer agreement between transferor and transferee; and
(i) You pay to Augusta Lawn Care a transfer fee of $15,000; however, in the case of a transfer to a corporation or limited liability company formed by You for the convenience of ownership (as determined by Augusta Lawn Care in its sole discretion), no such transfer fee shall be required.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, the franchisor plays a significant role in the transfer of a franchise agreement. The franchisee must obtain prior written consent from Augusta Lawn Care before transferring the agreement or any interest in the franchise. Any transfer without this consent is considered a material breach of the agreement, potentially leading to immediate termination.
Before a transfer can occur, the franchisee must notify Augusta Lawn Care in writing at least thirty days in advance. Augusta Lawn Care's consent to the transfer will not be unreasonably withheld, but they have the discretion to impose certain conditions. These conditions include ensuring that all financial and other obligations to Augusta Lawn Care and its affiliates are satisfied, and that the franchisee is not in default of any agreements. The transferor may also be required to execute a general release of claims against Augusta Lawn Care and its affiliates.
Augusta Lawn Care may also require the transferee to meet certain standards, such as demonstrating adequate educational, managerial, and business qualifications, possessing a good moral character and credit rating, and having sufficient financial resources. The transferee may also be required to enter into a written assignment assuming the franchisee's obligations or execute Augusta Lawn Care's current franchise agreement, which may have different terms, including potentially higher fees and a modified territory. The franchisee remains liable for obligations arising before the transfer and must execute any documents requested by Augusta Lawn Care to evidence this liability.
In essence, Augusta Lawn Care maintains control over who becomes a franchisee and ensures that both the outgoing and incoming parties meet their standards and obligations. The new franchisee acknowledges that Augusta Lawn Care's role is limited to approving the assignment and ensuring the new franchisee signs a new franchise agreement, with the purchase transaction occurring solely between the former and new franchisees.