To whom is the Augusta Lawn Care royalty fee payable?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
6 OTHER FEES**
| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Continuing Service | $600 for year 1, | Monthly via direct deposit | |
| Royalty(2) | $1,600 beginning year 2 | by the 15th of the month. | Pa |
Source: Item 6 — OTHER FEES (FDD pages 12–14)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, the royalty fee is payable to the franchisor. Specifically, the royalty fee is $1,600 beginning in year 2, and it is due monthly via direct deposit by the 15th of the month.
This means that after the first year of operation, an Augusta Lawn Care franchisee must pay $1,600 each month to the franchisor. This payment is typically a percentage of gross revenue in many franchise systems, but Augusta Lawn Care charges a flat monthly fee. The FDD specifies that payments are to be made via direct deposit, so franchisees must ensure they have a system in place to facilitate these payments on time to avoid potential penalties or late fees.
Franchisees should be aware of this ongoing financial obligation and factor it into their business planning. Understanding the due dates and payment methods is crucial for maintaining a good relationship with Augusta Lawn Care and avoiding any disruptions to their franchise operations. The flat royalty fee structure may be advantageous or disadvantageous depending on the franchisee's revenue.