Does Augusta Lawn Care have the option to purchase the business from the franchisee after termination?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
- (g) Augusta Lawn Care, or its designee, has an option to purchase the business from You, including but not limited to any or all of the physical assets of the Augusta Lawn Care Business, including its equipment, supplies and inventory, during a period of sixty (60) days following the effective date of termination.
If Augusta Lawn Care notifies You that it (or its designee) wishes to purchase the assets of the business from You following Termination of this Agreement, You must immediately surrender possession of the Augusta Lawn Care Business to Augusta Lawn Care or Its designee upon demand.
Augusta Lawn Care or its designee will operate the Augusta Lawn Care Business at its expense pending determination of the purchase price as set forth below.
The equipment, supplies, and inventory will be valued as follows:
- i.
The lower of depreciated value or fair market value of the equipment supplies and inventory; and
ii. Depreciated value of other tangible personal property calculated on the straight-line method over a five (5) year life, less any liens or encumbrances.
Augusta Lawn Care must send written notice to You within thirty (30) days after termination of this Agreement of its (or its designee s) election to exercise the option to purchase. If the parties do not agree on a price within the option period, the option period may be extended for up to fifteen (15) business days to permit appraisal by an independent appraiser who is mutually satisfactory to the parties. If the parties fail to agree upon an appraiser within the specified period, each will appoint an appraiser and the two appraisers thus appointed must agree on a third appraiser within ninety (90) days after termination who must determine the price for the physical assets of the Augusta Lawn Care Business in accordance with the standards specified above. This determination will be final and binding upon both Augusta Lawn Care, or Augusta Lawn Care's designee, as applicable, and You.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, Augusta Lawn Care, or its designee, has the option to purchase the business from the franchisee within 60 days following the termination date. This includes all physical assets, such as equipment, supplies, and inventory.
If Augusta Lawn Care decides to exercise this option, the franchisee must immediately surrender possession of the Augusta Lawn Care business. While the purchase price is being determined, Augusta Lawn Care or its designee will operate the business at their own expense. The valuation of the equipment, supplies, and inventory will be the lower of either the depreciated value or the fair market value. Other tangible personal property will be valued at depreciated value using the straight-line method over a five-year life, minus any existing liens or encumbrances.
Augusta Lawn Care must provide written notice of its intent to purchase within 30 days after the termination date. If both parties cannot agree on a price within the initial option period, the period can be extended by up to 15 business days to allow for an independent appraisal. If an appraiser cannot be agreed upon, each party will appoint an appraiser, and those two appraisers will then choose a third appraiser within 90 days after termination to determine the final price, which will be binding for both Augusta Lawn Care and the franchisee.