factual

What is the required general liability insurance in the aggregate for an Augusta Lawn Care franchise?

Augusta_Lawn_Care Franchise · 2025 FDD

Answer from 2025 FDD Document

You must obtain and maintain insurance, at your expense, as we require, in addition to any other insurance required by applicable law, your landlord, or otherwise. We may periodically change the amounts of coverage required under the insurance policies and require different or additional kinds of insurance, to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances, if the changes apply to all Augusta Lawn Care Businesses. Each insurance policy must name us and entities and persons affiliated with us as additional insureds. On our request, you must provide us with copies of all insurance policies together with proof of payment for insurance. You must send to us current certificates of insurance and copies of all insurance policies on an annual basis. Before you open your Augusta Lawn Care Business, you must furnish us with a certificate of insurance showing compliance with the insurance requirements. Currently, you must have the following insurance at a minimum:

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

    1. You must obtain and maintain, at your own expense, the insurance coverage we require and satisfy other insurance-related obligations. The amounts listed in this table reflect our estimate of basic insurance for your first month of operation, and is based upon the experience of our

Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 20–21)

What This Means (2025 FDD)

According to the 2025 Augusta Lawn Care FDD, franchisees must obtain and maintain various types of insurance coverage. While the FDD mentions the requirement for 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, it does not specify the exact minimum amounts or aggregate limits required for general liability insurance.

The FDD states that the specific types and minimum amounts of coverage are detailed in the Manual, which Augusta Lawn Care has the right to change periodically. Franchisees are responsible for ensuring that Augusta Lawn Care and its affiliates are named as additional insureds on all policies and for providing certificates of insurance to Augusta Lawn Care as proof of coverage.

Without the specific figures from the Manual, it's difficult to assess the exact cost implications for a new franchisee. However, the FDD does state in Item 7 that the estimated initial investment includes an estimate for the first month of basic insurance, based on the experience of their Affiliated Entity. Prospective franchisees should consult the Augusta Lawn Care Manual and clarify the required general liability insurance limits with the franchisor to fully understand the financial obligations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.