Is Augusta Lawn Care obligated to remit any benefits received from suppliers to Augusta Lawn Care franchisees?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Augusta Lawn Care may receive payments and/or other compensation from approved suppliers in any form on account of such suppliers dealing with You and/or other franchisees, and Augusta Lawn Care may use all amounts so received for any purpose Augusta Lawn Care deems appropriate. You acknowledge and agree that Augusta Lawn Care shall have the right to collect and retain all manufacturing allowances, marketing allowances, rebates, credits, monies, payments, or benefits (collectively. Allowances") offered by suppliers to You or to Augusta Lawn Care or its affiliates based upon Your purchases of Proprietary Services, products and other goods and services. You assign to Augusta Lawn Care or its designee all of Your right, title and interest in, and to any and all such Allowances and authorize Augusta Lawn Care or its designee to collect and retain any or all such Allowances without restriction.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to the 2025 Augusta Lawn Care FDD, Augusta Lawn Care is not obligated to remit any benefits received from suppliers to its franchisees. The FDD states that Augusta Lawn Care has the right to limit the suppliers with whom franchisees may deal and may even act as the sole approved supplier for certain products and services. Augusta Lawn Care also reserves the right to charge a mark-up on products or services sold to franchisees.
More specifically, Augusta Lawn Care "may receive payments and/or other compensation from approved suppliers in any form on account of such suppliers dealing with You and/or other franchisees, and Augusta Lawn Care may use all amounts so received for any purpose Augusta Lawn Care deems appropriate." The FDD further clarifies that Augusta Lawn Care has the right to collect and retain all manufacturing allowances, marketing allowances, rebates, credits, monies, payments, or benefits offered by suppliers based on a franchisee's purchases of proprietary services, products, and other goods and services.
This means that as an Augusta Lawn Care franchisee, you assign all rights to these allowances to Augusta Lawn Care, and Augusta Lawn Care is authorized to collect and retain these allowances without restriction. This arrangement is generally permissible in franchising, although prospective franchisees should understand that they will not directly benefit from any supplier incentives or rebates negotiated by Augusta Lawn Care. Instead, Augusta Lawn Care can use these funds as it sees fit, which may or may not directly benefit the franchisees.