For what purposes may Augusta Lawn Care use the benefits it receives from suppliers?
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 Augusta Lawn Care's 2025 Franchise Disclosure Document, Augusta Lawn Care has broad discretion regarding the use of payments or compensation received from approved suppliers. Augusta Lawn Care may receive payments or other compensation from approved suppliers for the suppliers dealing with franchisees. Augusta Lawn Care can use these amounts for any purpose it deems appropriate.
Augusta Lawn Care also 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. Franchisees assign all rights to these allowances to Augusta Lawn Care, allowing Augusta Lawn Care to collect and retain them without restriction.
This arrangement means that while franchisees may be contributing to these allowances through their purchases, they do not directly benefit from them. Instead, Augusta Lawn Care has the flexibility to use these funds as it sees fit, which may or may not directly benefit the franchisees. Prospective franchisees should consider this when evaluating the overall cost and benefit of the franchise, as it represents a potential revenue stream for Augusta Lawn Care derived from franchisee purchases.