Can Augusta Lawn Care require an Augusta Lawn Care franchisee to purchase supplies from approved suppliers?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
ecord, or otherwise reproduce the foregoing materials, in whole or in part, nor otherwise make the same available to any third party without our prior written consent.
7.2.3 Required Products and Services
You must offer all of the products and services we designate. We have the right to modify these items from time-to-time, at our sole discretion. You may not offer or sell any other product or service without our prior written consent. You must use the proprietary and nonproprietary techniques, materials and supplies we designate in the Manual. You must provide all services (including Proprietary Services) in accordance with the standards and specifications set forth in the Manual. You must, at all times, maintain sufficient staff, materials and supplies to meet reasonably anticipated customer demand.
(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.
- (b) Right to Derive Income. We may derive income, consideration payments and other benefits on account of your purchase or lease of any products, services, supplies, equipment and/or other items from us or any supplier, including approved suppliers and/or designated suppliers. This income may be derived in any form, including as a rebate from various suppliers based on the quantity of System franchisee purchases. We may use these benefits for any purpose we deem appropriate. We are not obligated to remit any benefits to you and reserve the right to retain all such benefits.
- (c) Alternative Suppliers. If you want to purchase any item, product service, goods, equipment or supplies from a supplier or distributor who is not on our approved list, you may request our approval of the supplier or distributor (except in instances where we have designated a sole supplier of any product, item good, equipment, service or supplies), which we may grant or deny in our sole and absolute discretion. The proposed supplier's or distributor's product or service, as applicable, must conform in every respect to our standards and specifications, and the supplier or distributor must have a good business reputation and be able and willing to provide sufficient quantities of the product and adequate service to you. The supplier or distributor must also provide us with any information we request in order to analyze the supplier's or distributor's suitability, and the composition and conformity of the product to our standards. This evaluation may include a sampling of the product at either the supplier's/distributor's or our place of business as we may designate. Where appropriate, we may require the supplier or distributor to provide us with product liability insurance. All suppliers and distributors must agree to provide us with reports concerning all purchases by you or other franchisees. We cannot predict with any certainty how long any evaluation will take, however, we will attempt to complete our evaluation within thirty (30) days.
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 absolute right to limit the suppliers with whom a franchisee may deal. Augusta Lawn Care may require franchisees to purchase certain items, products, services, signs, furnishings, supplies, fixtures, and equipment from Augusta Lawn Care or 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 one supplier for any given item or service.
Augusta Lawn Care may provide a list of approved suppliers, which can change over time. 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, and/or service. Augusta Lawn Care also reserves the right to own an interest in any entity that will act as an approved supplier for any or all products and services the franchisee will use, offer, and/or sell in the Augusta Lawn Care Business.
Augusta Lawn Care reserves the right to act as the only approved supplier for some or all of the Approved Products and Services and products the franchisee will purchase for their Augusta Lawn Care Business and reserves the right to charge a mark-up on any product or service sold to the franchisee. Augusta Lawn Care expressly disclaims any warranties or representations as to the condition of the goods or services sold by the suppliers, and the franchisee agrees to look solely to the manufacturer or the supplier for the remedy for any defect in the goods or services. Augusta Lawn Care may receive payments and/or other compensation from approved suppliers in any form on account of such suppliers dealing with the franchisee and/or other franchisees, and Augusta Lawn Care may use all amounts so received for any purpose Augusta Lawn Care deems appropriate.