If Augusta Lawn Care wishes to purchase the assets of the business after termination, what must the franchisee do?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
law).
- (g) Augusta Lawn Care, or its designee, has an option to purchase the business from You, including but not limited to any or all of the physical assets of the Augusta Lawn Care Business, including its equipment, supplies and inventory, during a period of sixty (60) days following the effective date of termination. 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.
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 the business after the franchise agreement is terminated, the franchisee must immediately surrender possession of the Augusta Lawn Care business to Augusta Lawn Care or its designee upon demand. This includes all physical assets such as equipment, supplies, and inventory. Augusta Lawn Care or its designee will then operate the business at their own expense while the purchase price is being determined.
The equipment, supplies, and inventory will be valued at the lower of either the depreciated value or the fair market value. Other tangible personal property will be valued at its depreciated value, calculated using the straight-line method over a five-year life, minus any existing liens or encumbrances. Augusta Lawn Care must provide written notice of its intent to purchase the assets within 30 days after the termination date of the agreement.
If the parties cannot agree on a purchase price within the initial option period, the option period can be extended by up to 15 business days to allow for an independent appraisal. The appraiser must be mutually agreeable to both parties. If an appraiser cannot be agreed upon, each party will appoint their own appraiser, and those two appraisers will then agree on a third appraiser within 90 days after termination. The third appraiser will determine the final purchase price, which will be binding on both Augusta Lawn Care and the franchisee. The purchase price will be paid no later than 90 days after the determination.