How long can the option period be extended to permit appraisal of the Augusta Lawn Care business?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Business, to Augusta Lawn Care.
- (f) You shall maintain all records required by Augusta Lawn Care under this Agreement for a period of not less than five (5) years after final payment of any amounts You owe to Augusta Lawn Care when this Agreement is terminated (or such longer period as required by applicable 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.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, Augusta Lawn Care has an option to purchase the franchisee's business assets within 60 days of the franchise agreement's termination date. If Augusta Lawn Care decides to exercise this option, they must provide written notice within 30 days of termination.
However, if Augusta Lawn Care and the franchisee cannot agree on a purchase price within this initial 60-day option period, there is a provision for extending the period to allow for an independent appraisal. The FDD states that the option period may be extended for up to 15 business days to facilitate an appraisal by a mutually agreed-upon independent appraiser.
If both parties cannot agree on an appraiser within the initial option period, each party will appoint their own appraiser. These two appraisers must then agree on a third appraiser within 90 days after the termination date. This third appraiser will then determine the final price for the physical assets of the Augusta Lawn Care business, and this determination will be binding on both Augusta Lawn Care and the franchisee.