What is Augusta Lawn Care's right of first refusal pertaining to?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
If any party holding any direct or indirect interest in this Agreement, in You, or in all or substantially all of the assets of the Business desires to accept any bona fide offer from a third party to purchase such interest, You shall notify Augusta Lawn Care as provided in Section 9 hereof, and shall provide such information and documentation relating to the offer as Augusta Lawn Care may require. Augusta Lawn Care shall have the right and option, exercisable within thirty (30) days after receipt of such written notification, to send written notice to the seller that Augusta Lawn Care intends to purchase the seller's interest on the same terms and conditions offered by the third party. If Augusta Lawn Care elects to purchase the seller's interest, closing on such purchase shall occur within sixty (60) days from the date of notice to the seller of the election to purchase by Augusta Lawn Care. If Augusta Lawn Care elects not to purchase the seller's interest, any material change thereafter in the terms of the offer from a third party shall constitute a new offer subject to the same rights of first refusal by Augusta Lawn Care as in the case of the third party's initial offer. Failure of Augusta Lawn Care to exercise the option afforded by this Section 9 shall not constitute a waiver of any other provision of this Agreement, including all of the requirements of this Section 9, with respect to a proposed transfer. In the event the consideration, terms and/or conditions offered by a third party are such that Augusta Lawn Care may not reasonably be required to furnish the same consideration, terms and/or conditions, then Augusta Lawn Care may purchase the interest proposed to be sold for the reasonable equivalent in cash. If the parties cannot agree within thirty (30) days on the reasonable equivalent in cash of the consideration, terms and/or conditions offered by the third party, an independent appraiser shall be designated by Augusta Lawn Care at Augusta Lawn Care's expense, and the appraiser's determination shall be binding.
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 of first refusal if a franchisee intends to sell their interest in the franchise. This means that if a franchisee receives a legitimate offer from a third party to purchase their interest in the Augusta Lawn Care business, they must first notify Augusta Lawn Care of the offer.
Augusta Lawn Care then has 30 days to decide whether to match the third party's offer and purchase the franchisee's interest themselves. If Augusta Lawn Care decides to purchase the interest, the closing on the purchase must occur within 60 days from the date Augusta Lawn Care notifies the seller of their election to purchase.
If Augusta Lawn Care chooses not to exercise its right of first refusal and the terms of the third party's offer materially change, the franchisee must present the new offer to Augusta Lawn Care, triggering a new right of first refusal. If the terms and conditions offered by the third party are such that Augusta Lawn Care may not reasonably be required to furnish the same consideration, terms and/or conditions, then Augusta Lawn Care may purchase the interest proposed to be sold for the reasonable equivalent in cash. If the parties cannot agree within thirty (30) days on the reasonable equivalent in cash of the consideration, terms and/or conditions offered by the third party, an independent appraiser shall be designated by Augusta Lawn Care at Augusta Lawn Care's expense, and the appraiser's determination shall be binding.