From what sources are Augusta Lawn Care's revenues primarily derived?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
em, products or services and You shall immediately cease to purchase from any disapproved supplier.
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 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, the company's revenues are derived from several sources related to its franchisees. These include the initial franchise fee, which franchisees pay upon signing the franchise agreement. Additionally, Augusta Lawn Care receives ongoing royalty fees, which are $600 per month for the first year and $1,600 per month thereafter.
Beyond these standard fees, Augusta Lawn Care may also generate revenue from training fees for continuing education programs, consulting fees for optional advisory services, and potentially from mark-ups on products and services sold to franchisees. The company also retains the right to collect allowances, such as manufacturing and marketing allowances, rebates, credits, and other benefits, from suppliers based on franchisee purchases.
For a prospective franchisee, this means that Augusta Lawn Care's financial success is directly linked to the growth and performance of its franchise network. Franchisees should be aware of all the fees and payments required, as these contribute to Augusta Lawn Care's revenue streams. Understanding these revenue sources can help franchisees assess the franchisor's motivations and ensure that their goals are aligned.
It is also important to note that Augusta Lawn Care has the discretion to change payment procedures and the list of approved suppliers, which could impact both the franchisee's costs and the franchisor's revenue. Franchisees should stay informed about any such changes and understand how they might affect their business operations and financial obligations.