Who must be protected by the insurance policies procured by an Augusta Lawn Care franchisee?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
You shall procure, prior to the commencement of any activities or operations under this Agreement, and shall maintain in full force and effect at all times during the term of this Agreement (and for such period thereafter as is necessary to provide the coverages required hereunder for events having occurred during the term of this Agreement), at Your expense, an insurance policy or policies protecting You, Augusta Lawn Care, and their respective officers, directors, partners, agents and employees against any demand or claim with respect to personal injury, death or property damage, business interruption, or any loss, liability or expense whatsoever arising or occurring upon or in connection with the Business, including, but not limited to, comprehensive general liability insurance, property insurance (including, but not limited to, fire, vandalism, and malicious mischief insurance for the replacement value of the Augusta Lawn Care Business and its contents), casualty insurance, business interruption insurance, statutory workers' compensation insurance, employer's liability insurance, product liability insurance, and automobile insurance coverage for all vehicles used in connection with the operation of Business, if applicable. Such policy or policies shall be written by a responsible carrier or carriers acceptable to Augusta Lawn Care, shall name Augusta Lawn Care and its subsidiaries and affiliates as additional insureds, shall provide for Augusta Lawn Care to receive notice upon cancellation or any event of default, including non-payment, and shall provide at least the types and minimum amounts of coverage specified in the Manual. Augusta Lawn Care shall have the right, from time-to-time, to make such
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 obtain and maintain insurance policies that protect multiple parties. These policies must protect the franchisee, Augusta Lawn Care, and their respective officers, directors, partners, agents, and employees. The insurance coverage is intended to safeguard against any demands or claims related to personal injury, death, property damage, business interruption, or any loss, liability, or expense arising from the operation of the Augusta Lawn Care business.
This requirement means that franchisees must secure comprehensive insurance coverage that extends beyond their own business and personal interests. By including Augusta Lawn Care and its associated parties as insured, the policies provide a safety net against potential liabilities that could arise from the franchisee's operations. This is a common practice in franchising, as it protects the franchisor's brand and reputation from potential lawsuits or financial losses resulting from the actions of individual franchisees.
The FDD specifies that the insurance policies should include, but are not limited to, comprehensive general liability insurance, property insurance, casualty insurance, business interruption insurance, statutory workers' compensation insurance, employer's liability insurance, product liability insurance, and automobile insurance coverage. The policies must be written by a carrier acceptable to Augusta Lawn Care and must name Augusta Lawn Care and its subsidiaries and affiliates as additional insureds. Furthermore, Augusta Lawn Care must receive notice upon cancellation or any event of default, including non-payment.
Prospective franchisees should carefully review the insurance requirements outlined in the Augusta Lawn Care Franchise Agreement and Manual to ensure they understand the full scope of coverage needed. They should also obtain quotes from multiple insurance providers to find the most competitive rates that meet the franchisor's requirements. Failure to maintain adequate insurance coverage could result in the franchisor procuring insurance on the franchisee's behalf and charging the franchisee for the costs, or potentially lead to a breach of the franchise agreement.