How is the term 'Affiliates' defined in the Augusta Lawn Care agreement?

According to the 2025 Augusta Lawn Care Franchise Disclosure Document, the term "Affiliates" is specifically defined within the franchise agreement. The agreement states that the term "Affiliates" is defined as it is in Rule 144 under the Securities Act of 1933.

This means that when the term "Affiliates" is used within the Augusta Lawn Care franchise agreement, it carries the same legal meaning as it does under the Securities Act of 1933, Rule 144. Rule 144 provides a safe harbor under which certain sales of restricted securities are deemed not to be distributions and, therefore, not subject to the registration provisions of the Securities Act. The definition of "affiliate" under Rule 144 is someone that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the issuer.

For a prospective Augusta Lawn Care franchisee, understanding this definition is important because it clarifies the scope of entities or individuals that are considered related to the franchisor under the agreement. This can have implications for various aspects of the franchise relationship, including but not limited to liability, compliance, and potential conflicts of interest. Franchisees should familiarize themselves with Rule 144 of the Securities Act of 1933 to fully understand the implications of this definition.