Does Augusta Lawn Care have the right to limit the suppliers with whom a franchisee may deal?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Augusta Lawn Care has the absolute right to limit the suppliers with whom you may deal. Augusta Lawn Care reserves the right to act as the only approved supplier for some or all of the Approved Products and Services and products You will purchase for Your Augusta Lawn Care Business. Augusta Lawn Care reserves the right to charge a mark-up on any product or service sold to You. In advising You of suppliers who meet its standards and specifications, Augusta Lawn Care expressly disclaims any warranties or representations as to the condition of the goods or services sold by the suppliers, including, without limitation, expressed or implied warranties as to merchantability or fitness for any intended purpose. You agree to look solely to the manufacturer or the supplier of equipment or services for the remedy for any defect in the goods or services. Augusta Lawn Care reserves the right to change the list of approved suppliers from time-to-time, in its sole and absolute discretion.
Augusta Lawn Care may receive payments and/or other compensation from approved suppliers in any form on account of such suppliers dealing with You and/or other franchisees, and Augusta Lawn Care may use all amounts so received for any purpose Augusta Lawn Care deems appropriate. You acknowledge and agree that Augusta Lawn Care shall have the right to collect and retain all manufacturing allowances, marketing allowances, rebates, credits, monies, payments, or benefits (collectively. Allowances") offered by suppliers to You or to Augusta Lawn Care or its affiliates based upon Your purchases of Proprietary Services, products and other goods and services. You assign to Augusta Lawn Care or its designee all of Your right, title and interest in, and to any and all such Allowances and authorize Augusta Lawn Care or its designee to collect and retain any or all such Allowances without restriction.
Augusta Lawn Care may, from time-to-time, revoke its approval of particular items, services, products or suppliers if Augusta Lawn Care determines, in its sole and absolute discretion. Upon receipt of notice of such revocation, You shall cease to offer, sell or use any disapproved item, products or services and You shall immediately cease to purchase from any disapproved supplier.
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 absolute right to limit the suppliers with whom a franchisee may deal. Augusta Lawn Care also reserves the right to act as the only approved supplier for some or all of the products and services a franchisee will purchase for their Augusta Lawn Care business. This means that franchisees may be required to purchase certain items or services directly from Augusta Lawn Care or from a list of approved suppliers.
Augusta Lawn Care reserves the right to charge a mark-up on any product or service sold to the franchisee. Augusta Lawn Care may also receive payments or other compensation from approved suppliers for dealing with franchisees, and Augusta Lawn Care can use these amounts for any purpose they deem appropriate. Franchisees also assign to Augusta Lawn Care the rights to any manufacturing allowances, marketing allowances, rebates, credits, or other benefits offered by suppliers based on the franchisee's purchases.
Augusta Lawn Care may revoke its approval of particular items, services, products, or suppliers at its discretion. If approval is revoked, franchisees must cease offering, selling, or using the disapproved items and immediately stop purchasing from the disapproved supplier. Augusta Lawn Care does not provide any warranties or representations regarding the goods or services sold by approved suppliers and the franchisee must seek remedies for any defects directly from the manufacturer or supplier.
These stipulations are fairly common in franchising, as they allow franchisors to maintain quality control and consistency across all franchise locations. However, it's important for prospective Augusta Lawn Care franchisees to understand that they may not have the freedom to choose their own suppliers and may be required to purchase certain items from Augusta Lawn Care or its approved suppliers, potentially at a higher cost.