Is Augusta Lawn Care obligated to remit any benefits it receives from suppliers to the franchisee?
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 FDD, Augusta Lawn Care is not required to remit benefits it receives 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.
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." Furthermore, the FDD 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 the franchisee's purchases. The franchisee assigns all rights to these allowances to Augusta Lawn Care, which can then retain them without restriction.
This arrangement means that Augusta Lawn Care benefits directly from the purchasing activity of its franchisees through agreements with suppliers. While this may provide Augusta Lawn Care with additional revenue, it also means that franchisees do not directly receive any financial benefits (such as rebates or allowances) from their purchases through approved suppliers. Prospective franchisees should consider this when evaluating the overall cost and potential profitability of an Augusta Lawn Care franchise.