Under what circumstances is the Addendum required for an Augusta Lawn Care franchise?
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 FDD, an amendment to the franchise agreement is required in specific states to address certain legal requirements. In South Dakota, an amendment is necessary to comply with the Department of Labor and Regulation's mandate to defer the payment of initial franchise fees and other initial payments until Augusta Lawn Care has fulfilled its pre-opening obligations and the franchisee has commenced operations. This amendment explicitly overrides any conflicting provisions in the standard franchise agreement regarding payment schedules for initial fees.
Additionally, in Virginia, an amendment to the Franchise Disclosure Document is required due to the Virginia Securities and Retail Franchising Act. This amendment ensures that if any terms in the Disclosure Document are inconsistent with the terms outlined in the amendment, the terms of the amendment will take precedence. Specifically, it adds a disclosure to Item 17.h, referencing Section 13.1-564 of the Virginia Securities and Retail Franchising Act, which states that it is unlawful for a franchisor to cancel a franchise without reasonable cause.
For a prospective Augusta Lawn Care franchisee, this means that if they are franchising in South Dakota or Virginia, they will receive an addendum to the standard franchise agreement that modifies certain terms to comply with state law. In South Dakota, this primarily affects the timing of initial fee payments, delaying them until after Augusta Lawn Care has completed its pre-opening obligations and the franchise is operational. In Virginia, the addendum provides additional protection against termination without reasonable cause, as defined by Virginia law. Franchisees should carefully review these addenda with their legal counsel to fully understand their rights and obligations in these states.