Which section of the Augusta Lawn Care Franchise Agreement outlines 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.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 20–21)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, Section 6 of Item 23 details the franchisee's payment obligations. This section covers various fees that an Augusta Lawn Care franchisee must pay. These include the initial franchise fee, which is a one-time payment due when the Franchise Agreement is signed.
Additionally, Section 6 outlines the ongoing royalty fees that franchisees must pay to Augusta Lawn Care. According to the FDD, these royalties are $600 per month for the first year and $1,600 per month thereafter. The franchisee is obligated to pay these continuing monthly royalties beginning when their business opens, or three months from the agreement's effective date, whichever comes first.
Section 6 also specifies the methods and timing for these payments. Franchisees are required to pay monthly royalties, advertising fees, and any other fees via electronic funds transfer or direct deposit, following procedures designated by Augusta Lawn Care. Augusta Lawn Care retains the right to modify these payment procedures with written notice. Furthermore, Augusta Lawn Care can apply any payment received to any past due amounts, regardless of how the franchisee intended the payment to be applied.