Must the insurance carrier be acceptable to Augusta Lawn Care?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
You shall procure, prior to the commencement of any activities or operations under this Agreement, and shall maintain in full force and effect at all times during the term of this Agreement (and for such period thereafter as is necessary to provide the coverages required hereunder for events having occurred during the term of this Agreement), at Your expense, an insurance policy or policies protecting You, Augusta Lawn Care, and their respective officers, directors, partners, agents and employees against any demand or claim with respect to personal injury, death or property damage, business interruption, or any loss, liability or expense whatsoever arising or occurring upon or in connection with the Business, including, but not limited to, comprehensive general liability insurance, property insurance (including, but not limited to, fire, vandalism, and malicious mischief insurance for the replacement value of the Augusta Lawn Care Business and its contents), casualty insurance, business interruption insurance, statutory workers' compensation insurance, employer's liability insurance, product liability insurance, and automobile insurance coverage for all vehicles used in connection with the operation of Business, if applicable. Such policy or policies shall be written by a responsible carrier or carriers acceptable to Augusta Lawn Care, shall name Augusta Lawn Care and its subsidiaries and affiliates as additional insureds, shall provide for Augusta Lawn Care to receive notice upon cancellation or any event of default, including non-payment, and shall provide at least the types and minimum amounts of coverage specified in the Manual. Augusta Lawn Care shall have the right, from time-to-time, to make such changes in minimum policy limits and endorsements in the Manual or otherwise in writing as it may determine in its reasonable discretion.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, franchisees must secure insurance policies from a "responsible carrier or carriers acceptable to Augusta Lawn Care." This requirement ensures that the insurance coverage obtained by the franchisee meets Augusta Lawn Care's standards and adequately protects the interests of both the franchisee and the franchisor.
Augusta Lawn Care also requires that the insurance policy names Augusta Lawn Care and its subsidiaries and affiliates as additional insureds. Furthermore, Augusta Lawn Care must receive notice upon cancellation or any event of default, including non-payment. The policy must provide at least the types and minimum amounts of coverage specified in the Manual, which Augusta Lawn Care can change from time to time.
This provision allows Augusta Lawn Care to maintain a degree of control over the insurance coverage, ensuring that franchisees have adequate protection against potential liabilities. It also protects Augusta Lawn Care from potential liabilities arising from the franchisee's operations. Franchisees should carefully review the insurance requirements outlined in the Manual and ensure that their insurance policies comply with these requirements. If a franchisee fails to maintain the required insurance, Augusta Lawn Care has the right, but not the obligation, to procure and maintain such insurance in the franchisee's name and charge the franchisee for it.