Under what circumstances is the Addendum to the Augusta Lawn Care Franchise Agreement required?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
AMENDMENT TO THE FRANCHISE AGREEMENT REQUIRED BY THE STATE OF SOUTH DAKOTA
This Amendment amends the Franchise "Agreement"), between Augusta Franchise, LLC, a Washington limited liability company ("Augusta Lawn Care"), and, a ("Franchisee"). Agreement, dated (the 1. The South Dakota Department of Labor and Regulation payment of the initial franchise fee and other initial payments owed by Franchisee to Augusta Lawn Care under until Augusta Lawn Care has completed its pre-opening obligations under the Agreement, and Franchisee has commenced operations. Therefore, and 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 commenced operations. requires us to defer complete, and Franchisee has 2. This Amendment is effective as of the Effective Date of the Agreement. Amendment to the Franchise Agreement on the same date as that on which the Franchise IN WITNESS WHEREOF, the parties hereto have duly executed this South Dakota Agreement was executed. AUGUSTA FRANCHISE LLC doing business as Augusta Lawn Care Name: Mike Andes Title: Chief Executive Officer Delivery Addresses for Notices: Delivery Address for Notices: Augusta Franchise LLC 8115 Birch Bay Square, Suite 133 Blaine, Washington 98230 Evan M. Goldman, Esquire The Franchise Firm LLP 225 Wilmington West Chester Pike, Suite 200 Chadds Ford, Pennsylvania 19317
AMENDMENT TO THE FRANCHISE DISCLOSURE DOCUMENT REQUIRED BY THE STATE OF VIRGINIA
As to franchises governed by the Virginia Securities and Retail Franchising Act, if any of the terms of the Disclosure Document are inconsistent with the terms below, the terms below control.
- In recognition of the restrictions contained in Section 13.1-564 of the Virginia Securities and Retail Franchising Act, the Franchise Disclosure Document is amended as follows:
Additional Disclosure: The following statements are added to Item 17.h.
Pursuant to Section 13.1-564 of the Virginia Securities and Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause. If any ground for default or termination stated in the franchise agreement does not constitute "reasonable cause," as that term may be defined in the Virginia Securities and Retail Franchising Act or the laws of Virginia, that provision may not be enforceable.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to the 2025 Augusta Lawn Care Franchise Disclosure Document, an amendment to the franchise agreement is required in specific situations, notably in South Dakota and Virginia, to comply with state laws. In South Dakota, an amendment is necessary to defer the payment of the initial franchise fee and other initial payments until Augusta Lawn Care has completed its pre-opening obligations and the franchisee has commenced operations. This amendment overrides any conflicting provisions in the standard franchise agreement regarding initial fee payments.
In Virginia, an amendment to the Franchise Disclosure Document is required to address restrictions under the Virginia Securities and Retail Franchising Act. This amendment adds a disclosure stating that it is unlawful for Augusta Lawn Care to cancel a franchise without reasonable cause, as defined by Virginia law. It clarifies that any termination grounds in the franchise agreement that do not meet the state's definition of "reasonable cause" may not be enforceable.
These amendments ensure that the Augusta Lawn Care franchise agreement complies with specific state regulations, providing additional protections and disclosures to franchisees in South Dakota and Virginia. Prospective franchisees should carefully review any state-specific addenda to understand their rights and obligations under the franchise agreement within their specific jurisdiction.