Within what period following termination does Augusta Lawn Care have the option to purchase the business?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- (g) Augusta Lawn Care, or its designee, has an option to purchase the business from You, including but not limited to any or all of the physical assets of the Augusta Lawn Care Business, including its equipment, supplies and inventory, during a period of sixty (60) days following the effective date of termination.
If Augusta Lawn Care notifies You that it (or its designee) wishes to purchase the assets of the business from You following Termination of this Agreement, You must immediately surrender possession of the Augusta Lawn Care Business to Augusta Lawn Care or Its designee upon demand.
Augusta Lawn Care or its designee will operate the Augusta Lawn Care Business at its expense pending determination of the purchase price as set forth below.
The equipment, supplies, and inventory will be valued as follows:
- i.
The lower of depreciated value or fair market value of the equipment supplies and inventory; and
ii. Depreciated value of other tangible personal property calculated on the straight-line method over a five (5) year life, less any liens or encumbrances.
Augusta Lawn Care must send written notice to You within thirty (30) days after termination of this Agreement of its (or its designee s) election to exercise the option to purchase. If the parties do not agree on a price within the option period, the option period may be extended for up to fifteen (15) business days to permit appraisal by an independent appraiser who is mutually satisfactory to the parties. If the parties fail to agree upon an appraiser within the specified period, each will appoint an appraiser and the two appraisers thus appointed must agree on a third appraiser within ninety (90) days after termination who must determine the price for the physical assets of the Augusta Lawn Care Business in accordance with the standards specified above. This determination will be final and binding upon both Augusta Lawn Care, or Augusta Lawn Care's designee, as applicable, and You.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, Augusta Lawn Care has the option to purchase the franchisee's business within sixty days following the effective date of termination. This includes the physical assets of the Augusta Lawn Care business, such as equipment, supplies, and inventory.
Augusta Lawn Care must provide written notice within thirty days after termination of their intent to exercise this purchase option. If the parties cannot agree on a price within the initial option period, the option period may be extended for up to fifteen business days to allow for an independent appraisal. If they still cannot agree, each party will appoint an appraiser, and those two appraisers will agree on a third appraiser within ninety days after termination to determine the price.
The purchase price will be determined based on the lower of the depreciated value or fair market value of the equipment, supplies, and inventory. Depreciated value of other tangible personal property will be calculated using the straight-line method over a five-year life, less any liens or encumbrances. The final purchase price must be paid within ninety days after its determination, and Augusta Lawn Care can offset any amounts owed by the franchisee against this price.
This clause is important for prospective franchisees as it outlines the conditions under which Augusta Lawn Care can buy back the business after termination. Franchisees should understand the valuation methods and timelines involved, as well as their obligations to surrender the business upon demand if Augusta Lawn Care exercises its option.