Who is responsible for the expense of the insurance policies required for an Augusta Lawn Care franchise?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
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
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, the franchisee is responsible for the expense of the required insurance policies. Prior to commencing any activities, the franchisee must procure and maintain insurance policies at their own expense. These policies protect the franchisee, Augusta Lawn Care, and their respective officers, directors, partners, agents, and employees against claims related to personal injury, death, property damage, business interruption, or any loss connected with the business.
The required insurance coverage includes comprehensive general liability insurance, property insurance (covering fire, vandalism, and malicious mischief), casualty insurance, business interruption insurance, statutory workers' compensation insurance, employer's liability insurance, product liability insurance, and automobile insurance for all vehicles used in the business. These policies must be written by a carrier acceptable to Augusta Lawn Care and must name Augusta Lawn Care and its subsidiaries and affiliates as additional insureds.
Augusta Lawn Care has the right to modify the minimum policy limits and endorsements. If a franchisee fails to maintain the required insurance, Augusta Lawn Care has the right, but not the obligation, to procure and maintain such insurance and charge the costs, including reasonable expenses, to the franchisee. This obligation is not limited by any insurance Augusta Lawn Care may maintain, and the franchisee must provide certificates of insurance to Augusta Lawn Care prior to commencement of operations and at least 30 days before any policy expiration.