If Augusta Lawn Care or its designee operates the Augusta Lawn Care Business after termination, who is responsible for the expenses?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Augusta Lawn Care or its designee will operate the Augusta Lawn Care Business at its expense pending determination of the purchase price as set forth below.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to the 2025 Augusta Lawn Care Franchise Disclosure Document, if Augusta Lawn Care or its designee chooses to operate the Augusta Lawn Care business after the franchise agreement is terminated, Augusta Lawn Care or its designee will be responsible for covering the expenses of operating the business. This occurs while the purchase price of the business's assets is being determined.
This clause is triggered if Augusta Lawn Care exercises its option to purchase the business from the franchisee following the termination of the franchise agreement. Upon notification of Augusta Lawn Care's intent to purchase the business assets, the franchisee must surrender possession of the Augusta Lawn Care business.
During the period between the franchisee surrendering the business and the determination of the purchase price, Augusta Lawn Care assumes the financial responsibility for the business's operation. This arrangement ensures the continued operation of the Augusta Lawn Care business during the transition period, with Augusta Lawn Care bearing the financial risk and reaping any potential profits during this time. The purchase price will be determined based on the depreciated or fair market value of the equipment, supplies, and inventory.