If Augusta Lawn Care exercises its option to purchase the Augusta Lawn Care business, when must I surrender possession?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
If Augusta Lawn Care notifies You that it (or its designee) wishes to purchase the assets of the business from You following Termination of this Agreement, You must immediately surrender possession of the Augusta Lawn Care Business to Augusta Lawn Care or Its designee upon demand.
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.
The equipment, supplies, and inventory will be valued as follows:
- i.
The lower of depreciated value or fair market value of the equipment supplies and inventory; and
ii. Depreciated value of other tangible personal property calculated on the straight-line method over a five (5) year life, less any liens or encumbrances.
Augusta Lawn Care must send written notice to You within thirty (30) days after termination of this Agreement of its (or its designee s) election to exercise the option to purchase. If the parties do not agree on a price within the option period, the option period may be extended for up to fifteen (15) business days to permit appraisal by an independent appraiser who is mutually satisfactory to the parties. If the parties fail to agree upon an appraiser within the specified period, each will appoint an appraiser and the two appraisers thus appointed must agree on a third appraiser within ninety (90) days after termination who must determine the price for the physical assets of the Augusta Lawn Care Business in accordance with the standards specified above. This determination will be final and binding upon both Augusta Lawn Care, or Augusta Lawn Care's designee, as applicable, and You.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, if Augusta Lawn Care decides to purchase the assets of your business after the termination of the franchise agreement, you must surrender possession of the Augusta Lawn Care business immediately upon their demand.
This means that as a franchisee, you need to be prepared to hand over your business operations to Augusta Lawn Care promptly if they choose to exercise their purchase option. This includes all physical assets like equipment, supplies, and inventory. Augusta Lawn Care will then operate the business at its own expense while the purchase price is being determined.
Augusta Lawn Care must provide written notice within 30 days after the termination of the agreement if they intend to exercise their option to purchase the business. The purchase price will be determined through valuation of the assets, and the closing date for the purchase will occur no later than 90 days after the price is determined. It is important to note that Augusta Lawn Care can offset any amounts you owe them against the purchase price.