What item of the Augusta Lawn Care FDD is amended regarding the Insufficient Funds Charge?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
AMENDMENT TO THE FRANCHISE DISCLOSURE DOCUMENT REQUIRED BY THE STATE OF VIRGINIA
As to franchises governed by the Virginia Securities and Retail Franchising Act, if any of the terms of the Disclosure Document are inconsistent with the terms below, the terms below control.
- In recognition of the restrictions contained in Section 13.1-564 of the Virginia Securities and Retail Franchising Act, the Franchise Disclosure Document is amended as follows:
Additional Disclosure: The following statements are added to Item 17.h.
Pursuant to Section 13.1-564 of the Virginia Securities and Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause. If any ground for default or termination stated in the franchise agreement does not constitute "reasonable cause," as that term may be defined in the Virginia Securities and Retail Franchising Act or the laws of Virginia, that provision may not be enforceable.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
The 2025 Augusta Lawn Care Franchise Disclosure Document (FDD) includes an amendment specific to franchises governed by the Virginia Securities and Retail Franchising Act. This amendment does not directly address the Insufficient Funds Fee. Instead, it focuses on the broader terms of the Franchise Disclosure Document and how they align with Virginia law.
The amendment states that if any terms in the Disclosure Document are inconsistent with the terms outlined below, the terms outlined below will take precedence. The specific focus of the amendment is on Section 13.1-564 of the Virginia Securities and Retail Franchising Act, which pertains to restrictions on franchise cancellation.
Specifically, the amendment adds statements to Item 17.h, clarifying that it is unlawful for Augusta Lawn Care to cancel a franchise without reasonable cause. It further explains that if any default or termination grounds stated in the franchise agreement do not constitute "reasonable cause" under Virginia law, those provisions may not be enforceable. This amendment ensures that Augusta Lawn Care's franchise agreements comply with Virginia law regarding franchise termination, but it does not mention the Insufficient Funds Fee.