When is the insufficient funds fee due for an Augusta Lawn Care franchise?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
6 OTHER FEES**
| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Continuing Service | $600 for year 1, | Monthly via direct deposit | |
| Royalty(2) | $1,600 beginning year 2 | by the 15th of the month. | Payable to us. |
| National Franchise Conference Fee | $500 | Annually. | Payable to us, regardless of whether you attention the National Franchise Conference. Includes one ticket. |
| Insurance | You must reimburse our costs | 15 days after billing. | If you fail to obtain insurance, we may obtain insurance for you and you must reimburse us. |
| --- | --- | --- | --- |
| Insufficient Funds | $50 | As incurred. | Due if you have insufficient funds in your EDTA to cover a payment, or if you pay by check, a check is returned for insufficient funds. |
| Cost of Enforcement | All costs including reasonable attorneys’ fees | Upon demand. | You must reimburse us for all costs in enforcing obligations if we prevail, under the Franchise Agreement. |
| Indemnification | Will vary | As incurred. | You must reimburse us if we are held liable for claims from your Business’ operation. |
| Insurance | You must reimburse our costs | 15 days after billing. | If you fail to obtain insurance, we may obtain insurance for you and you must reimburse us. |
| Insufficient Funds | $50 | As incurred. | Due if you have insufficient funds in your EDTA to cover a payment, or if you pay by check, a check is returned for insufficient funds. |
| Cost of Enforcement | All costs including reasonable attorneys' fees | Upon demand. | You must reimburse us for all costs in enforcing obligations if we prevail, under the Franchise Agreement. |
| Indemnification | Will vary | As incurred. | You must reimburse us if we are held liable for claims from your Business |
Source: Item 6 — OTHER FEES (FDD pages 12–14)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, the insufficient funds fee is due as incurred. This means that the $50 fee is payable each time a franchisee's payment is rejected due to insufficient funds in their account when using electronic direct transfer authorization (EDTA). It is also incurred if a check is returned due to insufficient funds.
This fee covers the administrative costs Augusta Lawn Care incurs when a franchisee's payment method fails. Franchisees should ensure they have sufficient funds available when payments are due to avoid these charges. This is a fairly standard practice in franchising, as franchisors need to recoup costs associated with handling failed payments.
Prospective Augusta Lawn Care franchisees should be aware of this fee and factor it into their financial planning. Maintaining adequate funds in their account and using reliable payment methods can help avoid these charges. While $50 may seem like a small amount, these fees can add up if insufficient funds issues occur frequently.