Which section of the Augusta Lawn Care Franchise Agreement addresses the franchisee's fee obligations?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
6. PAYMENTS BY FRANCHISEE
6.1 Initial Franchise Fee
When You sign this Agreement, You shall pay Augusta Lawn Care in cash or another form of payment that will make the funds immediately accessible to Augusta Lawn Care, such as cashier's check or wire transfer, an initial franchise fee as set forth in Exhibit A hereto (the "Initial Franchise Fee"). The Initial Franchise Fee is not refundable.
6.2 Royalties
On the 15th day of each month during the term of this Agreement, You shall pay Augusta Lawn Care a continuing royalty fee in the amount of $600 per month for year 1, and $1,600 per month thereafter.
6.3 Method and Application of Payments
You shall pay your continuing monthly royalties, advertising fees, and all other fees you are required to pay to Augusta Lawn Care, in accordance with the procedures designated by Augusta Lawn Care, which procedures Augusta Lawn Care has the discretion to change at any time upon written notice to you. Payment of royalties and fees shall be made by electronic funds transfer or direct deposit.
At no time will You sell, encumber or assign any of Your revenue stream, which includes, but is not limited to, current or future customer charges, to any other party without the prior written consent of Augusta Lawn Care.
Augusta Lawn Care has the right to apply any payment it receives from You to any past due amount You owe to Augusta Lawn Care regardless of how You indicate the payment is to be applied. Augusta Lawn Care reserves the right to change the manner in which you pay any and all fees you are required to pay to Augusta Lawn Care at any time upon written notice to you.
6.4 When Payments Begin
Your obligation to pay continuing monthly royalties (or minimum royalties) and other fees begins on the date Your Business opens for business, or three (3) months from the Effective Date of this Agreement, whichever is sooner.
6.5 Audit
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 20–21)
What This Means (2025 FDD)
According to the 2025 Augusta Lawn Care Franchise Disclosure Document, Section 6 of Item 23 outlines the franchisee's payment obligations. This section details the initial franchise fee, royalties, methods of payment, when payments begin, and audit rights.
Specifically, Section 6.1 states that the initial franchise fee is payable upon signing the agreement in a form that makes funds immediately accessible to Augusta Lawn Care, such as cash, cashier's check, or wire transfer. The initial franchise fee amount is set forth in Exhibit A and is non-refundable. Section 6.2 states that franchisees must pay a continuing royalty fee of $600 per month for the first year and $1,600 per month thereafter, due on the 15th of each month.
Section 6.3 specifies that monthly royalties, advertising fees, and all other fees must be paid according to Augusta Lawn Care's designated procedures, which can be changed with written notice. Payments are to be made via electronic funds transfer or direct deposit. Franchisees cannot sell, encumber, or assign their revenue stream without prior written consent from Augusta Lawn Care. Augusta Lawn Care has the right to apply payments to any past due amounts, regardless of the franchisee's intended application. Section 6.4 clarifies that the obligation to pay royalties and other fees begins when the business opens or three months from the agreement's effective date, whichever is sooner.