Is Augusta Lawn Care obligated to procure insurance if the franchisee fails to do so?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Should You, for any reason, fail to procure or maintain the insurance required by this Agreement, as such requirements may be revised from time-to-time by Augusta Lawn Care in the Manual or otherwise in writing, Augusta Lawn Care shall have the right and authority (but not the obligation) to procure and maintain such insurance in Your name and to charge same to You, which charges, together with Our reasonable expenses in so acting, shall be payable by You immediately upon notice. The foregoing remedies shall be in addition to any other remedies Augusta Lawn Care may have under this Agreement, or at law or in equity.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, franchisees are required to maintain specific insurance coverage. However, Augusta Lawn Care does not have an obligation to procure insurance on behalf of a franchisee if they fail to do so. Instead, Augusta Lawn Care has the right to procure and maintain the necessary insurance in the franchisee's name, but it is not obligated to do so.
If a franchisee fails to maintain the required insurance, Augusta Lawn Care can take action to secure the necessary coverage. The costs associated with Augusta Lawn Care obtaining insurance on behalf of the franchisee, along with any reasonable expenses incurred, will be charged to the franchisee. These charges are due immediately upon notification.
This arrangement protects Augusta Lawn Care from potential liabilities arising from the franchisee's operations. It also ensures that the Augusta Lawn Care business maintains the required insurance coverage, even if the franchisee fails to do so. However, the ultimate financial responsibility for maintaining insurance remains with the franchisee.