Which items in the Augusta Lawn Care FDD relate to the franchisee's fee obligations?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
em, products or services and You shall immediately cease to purchase from any disapproved supplier.
6. PAYMENTS BY FRANCHISEE
6.1 Initial Franchise Fee
When You sign this Agreement, You shall pay Augusta Lawn Care in cash or another form of payment that will make the funds immediately accessible to Augusta Lawn Care, such as cashier's check or wire transfer, an initial franchise fee as set forth in Exhibit A hereto (the "Initial Franchise Fee"). The Initial Franchise Fee is not refundable.
6.2 Royalties
On the 15th day of each month during the term of this Agreement, You shall pay Augusta Lawn Care a continuing royalty fee in the amount of $600 per month for year 1, and $1,600 per month thereafter.
6.3 Method and Application of Payments
You shall pay your continuing monthly royalties, advertising fees, and all other fees you are required to pay to Augusta Lawn Care, in accordance with the procedures designated by Augusta Lawn Care, which procedures Augusta Lawn Care has the discretion to change at any time upon written notice to you. Payment of royalties and fees shall be made by electronic funds transfer or direct deposit.
At no time will You sell, encumber or assign any of Your revenue stream, which includes, but is not limited to, current or future customer charges, to any other party without the prior written consent of Augusta Lawn Care.
Augusta Lawn Care has the right to apply any payment it receives from You to any past due amount You owe to Augusta Lawn Care regardless of how You indicate the payment is to be applied. Augusta Lawn Care reserves the right to change the manner in which you pay any and all fees you are required to pay to Augusta Lawn Care at any time upon written notice to you.
6.4 When Payments Begin
Your obligation to pay continuing monthly royalties (or minimum royalties) 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.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 20–21)
What This Means (2025 FDD)
According to the 2025 Augusta Lawn Care FDD, several fees are required from the franchisee. There is an initial franchise fee that must be paid when the agreement is signed. This fee is non-refundable, and the amount is specified in Exhibit A of the agreement. Franchisees must also pay continuing royalty fees, which are $600 per month for the first year and $1,600 per month thereafter. These royalties, along with advertising fees and other fees, are to be paid on the 15th of each month via electronic funds transfer or direct deposit, following procedures set by Augusta Lawn Care.
Franchisees' obligation to pay continuing monthly royalties and other fees begins when their business opens or three months from the agreement's effective date, whichever comes first. Additionally, franchisees are responsible for Command Center Fees, which are incurred monthly and paid to Augusta Lawn Care on the 1st day of each month. Franchisees may also incur costs for continuing training and education programs, as Augusta Lawn Care may require franchisees to pay a fee covering its costs plus an administrative fee for these programs.
Furthermore, Augusta Lawn Care may require franchisees to attend a mandatory annual conference, for which the franchisee is responsible for their own expenses and may also be required to pay a reasonable conference fee, regardless of whether they attend. It is important to note that in South Dakota, the payment of the initial franchise fee and other initial payments may be deferred until Augusta Lawn Care completes its pre-opening obligations and the franchisee has commenced operations.