Does the Augusta Lawn Care Guaranty include a waiver of notice of demand for payment?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.15.5 You hereby expressly agree that the existence of any claims You may have against Augusta Lawn Care or its Related Parties, whether or not arising from this Agreement, shall not constitute a defense to the enforcement by Augusta Lawn Care of the covenants contained in this Agreement. You agree to pay all costs and expenses, including reasonable attorneys' fees, incurred by Augusta Lawn Care in connection with the enforcement of any covenant contained in this Agreement.
11.16 Approval and Guaranty Provision
If You are a corporation, all officers and shareholders, or, if You are a partnership, all Your general partners, or, if You are a limited liability company, all Your members, shall approve this Agreement, permit You to furnish the financial information required by Augusta Lawn Care , and agree to the restrictions placed on them including restrictions on the transferability of their interests in the franchise and the Augusta Lawn Care Business and limitations on their rights to compete, and sign separately a Guaranty, guaranteeing Your payments and performance. Where required to satisfy our standards of creditworthiness, or to secure the obligations made under this Agreement, You may be asked to sign the Guaranty. Our form of Guaranty appears as Exhibit C to this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to the 2025 Augusta Lawn Care FDD, if the franchisee is a corporation, partnership, or limited liability company, certain individuals associated with the franchisee must sign a Guaranty, guaranteeing the franchisee's payments and performance. The FDD does not explicitly state whether this Guaranty includes a waiver of notice of demand for payment.
However, the FDD does state in Section 11.15.5 that the franchisee expressly agrees that the existence of any claims against Augusta Lawn Care shall not constitute a defense to the enforcement by Augusta Lawn Care of the covenants contained in the agreement. The franchisee also agrees to pay all costs and expenses, including reasonable attorneys' fees, incurred by Augusta Lawn Care in connection with the enforcement of any covenant contained in the agreement. This suggests that Augusta Lawn Care intends to enforce the covenants strictly and that the franchisee will bear the costs of enforcement.
Because the FDD does not provide the specific language of the Guaranty, a prospective Augusta Lawn Care franchisee should carefully review Exhibit C, which contains the form of Guaranty, and seek legal counsel to understand the full scope of the obligations and waivers included in the Guaranty, including whether it contains a waiver of notice of demand for payment. Understanding these terms is crucial for assessing the potential financial risks associated with the franchise agreement.