Does Augusta Lawn Care reserve the right to own an interest in any entity that will act as an approved supplier?

According to Augusta Lawn Care's 2025 Franchise Disclosure Document, Augusta Lawn Care does reserve the right to own an interest in any entity that will act as an approved supplier. This means that Augusta Lawn Care can have a financial stake in the companies that supply products and services to its franchisees.

This arrangement has several implications for prospective franchisees. First, Augusta Lawn Care may profit not only from franchise fees and royalties but also from the sale of supplies to franchisees. This could potentially create a conflict of interest, where Augusta Lawn Care is incentivized to choose suppliers that benefit the franchisor financially, even if those suppliers don't offer the best prices or quality for franchisees.

Second, Augusta Lawn Care has the right to become an approved supplier, or even the only supplier, for any item, product, good, and/or service at any time. This gives Augusta Lawn Care significant control over the supply chain and the costs that franchisees incur. Franchisees must purchase certain items, products, services, signs, furnishings, supplies, fixtures, and equipment from Augusta Lawn Care or distributors they have approved.

Finally, Augusta Lawn Care may receive payments or other compensation from approved suppliers for the suppliers dealing with franchisees. Augusta Lawn Care also retains all manufacturing allowances, marketing allowances, rebates, credits, monies, payments, or benefits offered by suppliers based upon the franchisee's purchases. Franchisees should consider how these arrangements might affect their costs and profitability and should inquire about the criteria Augusta Lawn Care uses to select and approve suppliers.