In Maryland, when does Augusta Lawn Care defer payment of the initial franchise fee from the franchisee?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
As to franchises governed by the Maryland Franchise Registration and Disclosure Law, if any of the terms of the Disclosure Document are inconsistent with the terms below, the terms below control.
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- The Office of the Attorney General of the State of Maryland requires us to defer payment of the initial franchise fee and other initial payments owed by Franchisee to Augusta Lawn Care under until Augusta Lawn Care has completed its pre-opening obligations under the Agreement, and Franchisee has commenced operations. Therefore, and notwithstanding Section 6.1, Section 6.2, or any other provision of the Agreement, all initial fees will be deferred until after Augusta Lawn Care's initial obligations to Franchisee are complete, and Franchisee has commenced operations.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to the 2025 Augusta Lawn Care Franchise Disclosure Document, franchisees in Maryland are not required to pay the initial franchise fee until Augusta Lawn Care has completed its pre-opening obligations as outlined in the Franchise Agreement, and the franchisee has commenced operations. This amendment to the franchise agreement is a requirement by the Office of the Attorney General of the State of Maryland. This supersedes any conflicting information in Sections 6.1 and 6.2, or any other provision of the agreement.
This deferral of the initial franchise fee provides a significant benefit to prospective Augusta Lawn Care franchisees in Maryland. It reduces the upfront financial burden and aligns the payment of the fee with the commencement of business operations. This ensures that franchisees only pay the fee after Augusta Lawn Care has fulfilled its initial obligations, such as providing training, support, and resources necessary to start the franchise.
It is important for prospective franchisees in Maryland to carefully review the specific pre-opening obligations outlined in the Franchise Agreement to understand when the initial franchise fee will become due. They should also confirm with Augusta Lawn Care that all pre-opening obligations have been met before making the initial franchise fee payment. This amendment aims to protect franchisees by ensuring they receive the agreed-upon support before incurring the full financial commitment.