If I underpay royalties, advertising, or other fees, will I have to pay interest to Augusta Lawn Care?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
ies) and other fees begins on the date Your Business opens for business, or three (3) months from the Effective Date of this Agreement, whichever is sooner.
6.5 Audit
Augusta Lawn Care has the right during normal working hours to audit Your books and records, including Your tax returns with respect to the Augusta Lawn Care Business. If an audit discloses an underpayment of royalties, advertising, or other fees payable under this Agreement, You shall immediately pay these amounts to Augusta Lawn Care, together with accrued interest on the amount underpaid in accordance with Section 6.9 of this Agreement. In addition, if the underpayment exceeds two percent (2%) of the total royalty, advertising, or other fee payable for any period covered under the audit, You shall reimburse Augusta Lawn Care for all expenses actually incurred by Augusta Lawn Care in connection with the audit, including reasonable attorneys' fees.
6.6 Training Fees and Costs
Augusta Lawn Care will not charge a fee for the initial training program for Your Operating Principal and manager, if any, if you are a legal entity, or You and your manager, if any, if you are an individual. Augusta Lawn Care may also charge a training fee for continuing education programs at cost plus an administrative fee determined by Augusta Lawn Care for all training offered by Augusta Lawn Care, You shall pay any costs of travel, lodging, meals and other incidental expenses that You and Your employees incur.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, if an audit reveals an underpayment of royalties, advertising, or other fees, you will be required to pay the underpaid amount to Augusta Lawn Care. Additionally, you will have to pay accrued interest on the underpaid amount as detailed in Section 6.9 of the agreement.
Section 6.9 specifies that any payment not received when due will incur interest. This interest will be calculated at the lesser of 1.5% per month or the highest commercial contract interest rate allowed by law per year, or the highest rate allowed by applicable law on the date the payment was due.
Furthermore, if the underpayment exceeds 2% of the total royalty, advertising, or other fee payable for the period covered by the audit, you will be responsible for reimbursing Augusta Lawn Care for all expenses incurred during the audit. This includes reasonable attorney's fees, which can significantly increase the financial burden of an underpayment.