What is the minimum insurance coverage required to be maintained for an Augusta Lawn Care franchise?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to the foregoing, on or before the tenth (10th) day following the end of each month, you shall submit proof of payment for any leasehold rental obligations, sales tax, and payroll taxes.
7.6 Insurance
7.6.1 Minimum Insurance Requirements
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.
7.6.2 Non-Waiver
Your obligation to obtain and maintain the policy or policies in the amounts specified in the Manual shall not be limited in any way by reason of any insurance that may be maintained by Augusta Lawn Care, nor shall Your performance of that obligation relieve you of liability under the indemnity provisions set forth in Section 8.5 of this Agreement.
7.6.3 Franchisor Entitled to Recover
All public liability and property damage policies shall contain a provision that Augusta Lawn Care, although not named as an insured, shall nevertheless be entitled to recover under such policies on any loss occasioned to Augusta Lawn Care or its agents or employees by reason of the negligence of You or your agents or employees.
7.6.4 Certificates of Insurance
Prior to the commencement of any operations under this Agreement, and thereafter at least thirty (30) days prior to the expiration of any policy, You shall deliver to Augusta Lawn Care Certificates of Insurance evidencing the proper types and minimum amounts of coverage.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to the 2025 Augusta Lawn Care FDD, franchisees must secure and maintain specific insurance policies throughout the term of their agreement. These policies are designed to protect the franchisee, Augusta Lawn Care, and their respective officers, directors, partners, agents, and employees from claims related to personal injury, death, property damage, business interruption, or any loss connected to the business.
The required insurance coverage includes comprehensive general liability insurance, property insurance (covering fire, vandalism, and malicious mischief), casualty insurance, business interruption insurance, statutory workers' compensation insurance, employer's liability insurance, product liability insurance, and automobile insurance for all vehicles used in the business. The policies must be written by carriers acceptable to Augusta Lawn Care and must name Augusta Lawn Care and its affiliates as additional insureds. Augusta Lawn Care must also receive notice upon cancellation or default, including non-payment.
The FDD states that the specific types and minimum amounts of coverage are detailed in the Manual. Augusta Lawn Care retains the right to modify these minimum policy limits and endorsements in the Manual or in writing. Franchisees are obligated to provide Certificates of Insurance to Augusta Lawn Care before commencing operations and at least 30 days before any policy's expiration, ensuring continuous coverage.
If a franchisee fails to maintain the required insurance, Augusta Lawn Care has the right, but not the obligation, to procure the insurance and charge the franchisee for it, including reasonable expenses. This is in addition to any other remedies Augusta Lawn Care may have under the agreement or at law. Prospective franchisees should carefully review the Manual to understand the exact minimum coverage amounts required and stay updated on any changes to these requirements to avoid potential penalties or lapses in coverage.