Does Augusta Lawn Care have the right to apply payments from a franchisee to past due amounts?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Augusta Lawn Care has the right to apply any payment it receives from You to any past due amount You owe to Augusta Lawn Care regardless of how You indicate the payment is to be applied. Augusta Lawn Care reserves the right to change the manner in which you pay any and all fees you are required to pay to Augusta Lawn Care at any time upon written notice to you.
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 right to allocate payments received from a franchisee towards any outstanding past due amounts owed to them. This applies regardless of any specific instructions the franchisee might provide regarding how the payment should be applied. This provision grants Augusta Lawn Care significant control over the application of franchisee payments.
For a prospective Augusta Lawn Care franchisee, this means that if you have any overdue balances with Augusta Lawn Care, any subsequent payments you make can be applied to those past due amounts first. This could potentially leave other current obligations unpaid, even if you intended the payment to cover those newer charges.
This clause underscores the importance of maintaining timely payments to Augusta Lawn Care to avoid having your payments re-allocated to older debts. It is a fairly standard practice in franchising to protect the franchisor's financial interests and ensure all outstanding debts are settled.