Can Augusta Lawn Care require an Augusta Lawn Care franchisee to purchase equipment from approved suppliers?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) Approved Suppliers. We have the absolute right to limit the suppliers with whom you may deal. We may require you to purchase certain items, products, services, signs, furnishings, supplies, fixtures and equipment from us or distributors we have approved. Unless we specify otherwise in writing, you may be required to purchase all goods, items, products, equipment and services required for the development and operation of the Business from our approved or designated suppliers. We have the right to designate one supplier for any given item or service. We may provide you with a list of suppliers, which list may change over time. While the suppliers included on this list may be mandated, approved and/or recommended, we reserve the right to change this list, from time-to-time, in our sole discretion. Notifications of changes to the approved suppliers list will be communicated to you through changes to the Manual or other written communications, including via electronic
mail. We may revoke approval of suppliers in our sole and absolute discretion, at any time, upon written notice. We may become an approved supplier, and/or the only supplier, for any item, product, good and/or service at any time. We reserve the right to own an interest in any entity that will act as an approved supplier for any or all products and services You will use, offer and/or sell in the Augusta Lawn Care Business.
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 the authority to mandate that franchisees purchase certain items, products, services, signs, furnishings, supplies, fixtures, and equipment from them or from distributors they have approved. Unless otherwise specified in writing, franchisees may be required to purchase all goods, items, products, equipment, and services needed for the development and operation of the business from Augusta Lawn Care's approved or designated suppliers. Augusta Lawn Care has the right to designate a single supplier for any given item or service.
Augusta Lawn Care may provide franchisees with a list of approved suppliers, which can change over time. While the suppliers on this list may be mandated, approved, or recommended, Augusta Lawn Care reserves the right to change the list at its sole discretion. Notifications of changes to the approved suppliers list will be communicated through changes to the manual or other written communications, including via electronic mail. Augusta Lawn Care may revoke approval of suppliers at any time upon written notice and may also become an approved supplier or the only supplier for any item, product, good, or service.
Augusta Lawn Care also reserves the right to own an interest in any entity that acts as an approved supplier for any or all products and services that franchisees will use, offer, or sell in their Augusta Lawn Care business. This means that Augusta Lawn Care has significant control over the supply chain and can potentially profit from the sale of goods and services to its franchisees. This arrangement is fairly common in franchising, as it allows franchisors to maintain quality control and potentially generate additional revenue.