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What are the ongoing fees for Augusta Lawn Care (Item 6) and what is the due date for these fees?

Augusta_Lawn_Care Franchise · 2025 FDD

Answer from 2025 FDD Document

On the 15th day of each month during the term of this Agreement, You shall pay Augusta Lawn Care a continuing royalty fee in the amount of $600 per month for year 1, and $1,600 per month thereafter.

Your obligation to pay continuing monthly royalties (or minimum royalties) and other fees begins on the date Your Business opens for business, or three (3) months from the Effective Date of this Agreement, whichever is sooner.

Any payment not received by Augusta Lawn Care when due will bear interest at the lesser of 1.5% per month or highest commercial contract interest rate late law allows per year or at the highest rate allowed by applicable law on the date when payment is due, whichever is less. Interest charges on late payments are intended to partially compensate Augusta Lawn Care for loss of use of the funds and for internal administrative costs resulting from late payment which would otherwise be difficult to measure precisely. The fact that such charges are imposed shall not be construed as a waiver of Augusta Lawn Care right to timely payment.

You shall also be required to pay service fees for Your use of Augusta Lawn Care's Command Center, which fees may be expressed monthly and/or on the basis of usage, in amounts or at rates determined by Augusta Lawn Care from time-to-time.

In addition to the periodic advisory assistance described in Section 5.3, optional consulting services may be made available to You by Augusta Lawn Care on a per hour fee basis, at a rate determined by Augusta Lawn Care, plus reimbursement of direct costs.

If any payment is returned for insufficient funds, each time, You shall pay to us an Insufficient Funds Fee of $50.

You shall pay to Augusta Lawn Care a transfer fee of Fifteen Thousand Dollars ($15,000), as a condition of, and prior to, any Transfer.

What This Means (2025 FDD)

According to the 2025 Augusta Lawn Care Franchise Disclosure Document, franchisees must pay several ongoing fees. The continuing royalty fee is $600 per month for the first year and $1,600 per month thereafter, due on the 15th of each month.

In addition to royalties, Augusta Lawn Care franchisees are required to pay service fees for using Augusta Lawn Care's Command Center. These fees can be charged monthly or based on usage, with the specific amounts determined by Augusta Lawn Care. The FDD also mentions potential consulting fees, which are charged on a per-hour basis at a rate determined by Augusta Lawn Care, plus reimbursement for direct costs.

Other fees include a transfer fee of $15,000, an insufficient funds fee of $50, and potential training fees for continuing education programs. Payments not received when due will incur interest at the lesser of 1.5% per month or the highest commercial contract interest rate allowed by law. The obligation to pay these ongoing fees begins when the business opens or three months from the agreement's effective date, whichever is sooner. All fees must be paid on a preferred priority basis, before other operating and capital expenditures.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.