Will Augusta Lawn Care receive notice upon cancellation of an Augusta Lawn Care franchisee's insurance policy?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to the foregoing, on or before the tenth (10th) day following the end of each month, you shall submit proof of payment for any leasehold rental obligations, sales tax, and payroll taxes.
7.6 Insurance
7.6.1 Minimum Insurance Requirements
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
changes in minimum policy limits and endorsements in the Manual or otherwise in writing as it may determine in its reasonable discretion.
7.6.2 Non-Waiver
Your obligation to obtain and maintain the policy or policies in the amounts specified in the Manual shall not be limited in any way by reason of any insurance that may be maintained by Augusta Lawn Care, nor shall Your performance of that obligation relieve you of liability under the indemnity provisions set forth in Section 8.5 of this Agreement.
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 requires franchisees to procure and maintain specific insurance policies. These policies must protect the franchisee, Augusta Lawn Care, and their respective officers, directors, partners, agents, and employees against various claims and losses related to the business.
Specifically, Augusta Lawn Care mandates that these insurance policies provide for Augusta Lawn Care to receive notice upon cancellation or any event of default, including non-payment. The policies must also meet the types and minimum amounts of coverage detailed in the Augusta Lawn Care manual, which Augusta Lawn Care can modify periodically.
Furthermore, franchisees must deliver Certificates of Insurance to Augusta Lawn Care before commencing operations and at least 30 days before any policy's expiration. These certificates must expressly state that Augusta Lawn Care will receive no less than 30 days' prior written notice in the event of material alteration to or cancellation of the coverages. This ensures Augusta Lawn Care is informed of any changes to the franchisee's insurance coverage, allowing them to take necessary actions to protect their interests, such as procuring insurance on behalf of the franchisee if they fail to maintain the required coverage.