What section of the Augusta Lawn Care agreement is superseded by the deferral of initial fees in Maryland?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding Section 6.1, Section 6.2, or any other provision of the Agreement, all initial fees will be deferred until after Augusta Lawn Care's initial obligations to Franchisee are complete, and Franchisee has commenced operations.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to the 2025 Augusta Lawn Care Franchise Disclosure Document, the deferral of initial franchise fees in Maryland supersedes sections 6.1 and 6.2, as well as any other conflicting provisions within the agreement. This deferral is mandated by the Office of the Attorney General of the State of Maryland.
Specifically, the amendment states that initial fees, which typically include the initial franchise fee, are deferred until Augusta Lawn Care has fulfilled its pre-opening obligations as outlined in the agreement, and the franchisee has commenced operations. This means that a new Augusta Lawn Care franchisee in Maryland will not be required to pay these initial fees upfront.
This modification offers a significant benefit to prospective Augusta Lawn Care franchisees in Maryland, as it reduces the initial financial burden. Instead of paying the fees before starting operations, the franchisee can use those funds to establish the business and begin generating revenue. This arrangement aligns the franchisee's payment obligations with the franchisor's performance of their pre-opening duties, potentially reducing the franchisee's risk.