Under the Augusta Lawn Care Franchise Agreement, where can I find the Principal Owner's Guaranty?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT C TO AUGUSTA LAWN CARE FRANCHISE AGREEMENT
PRINCIPAL OWNER'S GUARANTY
Source: Item 22 — CONTRACTS (FDD pages 43–44)
What This Means (2025 FDD)
According to the 2025 Augusta Lawn Care Franchise Disclosure Document, the Principal Owner's Guaranty can be found as Exhibit C to the Augusta Lawn Care Franchise Agreement.
This guaranty is a legally binding document where the principal owner personally guarantees the franchisee's obligations under the Franchise Agreement. This means that if the franchise is owned by a corporation, LLC, or partnership, the principal owner(s) will be personally responsible for ensuring the business meets its financial and operational obligations to Augusta Lawn Care.
The FDD also states that if the franchisee is a corporation, all officers and shareholders, or if a partnership, all general partners, or if a limited liability company, all members, shall approve the Franchise Agreement, permit the franchisee to furnish required financial information, agree to the restrictions placed on them, including transferability of interests and limitations on rights to compete, and sign separately a Guaranty, guaranteeing the franchisee's payments and performance. The franchise may require the franchisee to sign the Guaranty to satisfy standards of creditworthiness or to secure obligations made under the Franchise Agreement.
Prospective Augusta Lawn Care franchisees should carefully review Exhibit C with their legal counsel to fully understand the implications of providing a personal guaranty. They should assess their personal financial situation and risk tolerance before signing the guaranty, as it could expose their personal assets to liability if the franchise business fails to meet its obligations.