Does Augusta Lawn Care have the right to audit my business records?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Augusta Lawn Care has the right during normal working hours to audit Your books and records, including Your tax returns with respect to the Augusta Lawn Care Business. If an audit discloses an underpayment of royalties, advertising, or other fees payable under this Agreement, You shall immediately pay these amounts to Augusta Lawn Care, together with accrued interest on the amount underpaid in accordance with Section 6.9 of this Agreement. In addition, if the underpayment exceeds two percent (2%) of the total royalty, advertising, or other fee payable for any period covered under the audit, You shall reimburse Augusta Lawn Care for all expenses actually incurred by Augusta Lawn Care in connection with the audit, including reasonable attorneys' fees.
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 audit a franchisee's business records. Augusta Lawn Care can audit the franchisee's books and records, including tax returns, during normal working hours.
If the audit uncovers an underpayment of royalties, advertising, or other fees, the franchisee must immediately pay the underpaid amount to Augusta Lawn Care, along with accrued interest as described in Section 6.9 of the agreement. Furthermore, if the underpayment exceeds two percent of the total royalty, advertising, or other fee payable for the audited period, the franchisee is responsible for reimbursing Augusta Lawn Care for all expenses related to the audit. This reimbursement includes reasonable attorney's fees incurred by Augusta Lawn Care.
In addition to formal audits, Augusta Lawn Care can conduct periodic quality control and records inspections of the Augusta Lawn Care Business at any time during the term of the agreement, with or without prior notice. Franchisees are required to cooperate with these inspections and grant Augusta Lawn Care and its agents the right to enter the premises, take photographs and videos, interview personnel and customers, and inspect and copy any books, records, and documents related to the business's operation. Franchisees must also maintain all records required by Augusta Lawn Care for a period of not less than five years after the final payment of any amounts owed to Augusta Lawn Care when the agreement is terminated.