factual

Under what conditions will Augusta Lawn Care defer initial fees for a franchisee?

Augusta_Lawn_Care Franchise · 2025 FDD

Answer from 2025 FDD Document

The State of Washington has imposed a financial condition under which the initial franchise fees due will be deferred until the franchisor has fulfilled its initial pre-opening obligations under the Franchise Agreement and the franchise is open for business.

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

Source: Item 23 — RECEIPTS (FDD pages 44–184)

What This Means (2025 FDD)

According to Augusta Lawn Care's 2025 Franchise Disclosure Document, the initial franchise fees may be deferred under specific conditions imposed by certain states. In South Dakota, the South Dakota Department of Labor and Regulation requires Augusta Lawn Care to defer the initial franchise fee and other initial payments until Augusta Lawn Care has completed its pre-opening obligations under the Franchise Agreement, and the franchisee has commenced operations. Therefore, all initial fees will be deferred until after Augusta Lawn Care's initial obligations to the franchisee are complete, and the franchisee has commenced operations.

Similarly, in the State of Washington, a financial condition exists where the initial franchise fees due will be deferred until Augusta Lawn Care has fulfilled its initial pre-opening obligations under the Franchise Agreement and the franchise is open for business.

These deferral conditions are mandated by the respective states to ensure that Augusta Lawn Care fulfills its obligations to the franchisee before receiving the initial franchise fees. This provides a level of protection for the franchisee, ensuring that the franchisor is committed to providing the necessary support and services before the franchisee invests fully in the business. Prospective franchisees should confirm with Augusta Lawn Care whether these or other state-specific deferral conditions apply to their specific location.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.