What happens to subsection 4.5.2(e) of the Augusta Lawn Care franchise agreement upon renewal?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
You shall have the option to renew this Agreement for one (1) renewal term (the "Renewal Term"), with such Renewal Term being for a period of ten (10) years subject to your satisfaction of the following conditions, all of which shall be met before each renewal:
(a) You and Your Related Parties are in Good Standing under this Agreement, and any other Agreement between Augusta Lawn Care and You, and You and Your Related Parties are in compliance with the Manual;
(b) You shall give Augusta Lawn Care written notice of Your election to renew not less than six (6) months nor more than twelve (12) months prior to the end of the then-current term;
(c) You and any Related Parties that have signed this Agreement shall have signed a copy of the then-current Franchise Agreement (except with respect to the renewal provisions thereof, which shall not supersede this Section 4.5.2) not less than thirty (30) days before the expiration of the then-current term, or thirty (30) days after You receive a signature-ready copy of the then-current Franchise Agreement from Augusta Lawn Care, whichever is later; and
(d) You and Your Related Parties that are parties to this Agreement shall have executed a general release, in a form satisfactory to Augusta Lawn Care, of any and all claims against Augusta Lawn Care and its Related Parties affiliates successors and assigns and their respective directors, officers, shareholders, partners, agents, representatives, servants, and employees in their corporate and individual capacities, including, without limitation, claims arising under this Agreement, any other agreement between You and Augusta Lawn Care or its affiliates, and federal, state, and local laws and rules.
The provisions of the standard franchise agreement in use by Augusta Lawn Care at the time of renewal may be materially different than those contained in this Agreement, including, but not limited to, provisions for increased royalties, advertising, and other fees. You hereby acknowledge and agree that Your right to renew this Agreement shall be contingent upon Your execution of the then-current form of franchise agreement and acceptance of the new provisions.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
Based on the 2025 Augusta Lawn Care Franchise Disclosure Document, subsection 4.5.2 outlines the renewal terms for the franchise agreement. However, there is no mention of a subsection (e) within 4.5.2. The document states that when renewing the franchise agreement, the franchisee must sign the then-current franchise agreement, but the renewal provisions of the original agreement do not supersede section 4.5.2. This means the conditions for renewal remain as originally stated, even if the new franchise agreement has different terms.
To renew their Augusta Lawn Care franchise, franchisees must be in good standing, provide written notice within a specific timeframe, sign the current franchise agreement, and execute a general release of claims against Augusta Lawn Care. The new franchise agreement signed at the time of renewal may contain materially different terms, including increased royalties, advertising fees, and other fees.
Prospective franchisees should note that while the renewal conditions themselves remain consistent, the underlying franchise agreement they sign upon renewal can change significantly. It is important to carefully review the then-current franchise agreement offered at the time of renewal to understand any new obligations or costs. Franchisees should consult with a legal professional to fully understand the implications of these changes before signing the renewal agreement.