factual

Where will arbitration proceedings take place between a franchisee and Augusta Lawn Care?

Augusta_Lawn_Care Franchise · 2025 FDD

Answer from 2025 FDD Document

, view or opinion made in the mediation procedure is discoverable or admissible in evidence for any purpose, not even impeachment, in any proceeding involving either of the parties. However, evidence that would otherwise be discoverable or admissible will not be excluded from discovery or made inadmissible simply because of its use in the mediation.

11.8 Arbitration

Except as provided in Section 11.9, and if not resolved by the negotiation and mediation procedures described in Section 11.7 above, any dispute, controversy, or claim between you and/or any of your Related Parties, on the one hand, and Augusta Lawn Care and/or any of Augusta Lawn Care's Related Parties, on the other hand, including, without limitation, any dispute, controversy, or claim arising under, out of in connection with or related to: (a) this Agreement; (b) the relationship of the parties; (c) the events leading up to the execution of this Agreement; (d) any loan or other finance arrangement between you and Augusta Lawn Care or its Related Parties; (e) the parties' relationship; (f) any System standard; (g) any claim based in tort or any theory of negligence; and/or (j) the scope or validity of the arbitration obligation under this Agreement, shall be determined in Whatcom County, Washington, by the American Arbitration Association ("AAA"). This arbitration clause will not deprive Augusta Lawn Care of any right it may otherwise have to seek provisional injunctive relief from a court of competent jurisdiction.

  • 11.8.1 The arbitration will be administered by the AAA pursuant to its Commercial Arbitration Rules then in effect by one (1) arbitrator. The arbitrator shall be an attorney with substantial experience in franchise law. If proper notice of any hearing has been given, the arbitrator will have full power to proceed to take evidence or to perform any other acts necessary to arbitrate the matter in the absence of any party who fails to appear.
  • 11.8.2 In connection with any arbitration proceeding, each party will submit or file any claim which would constitute a compulsory counterclaim (as defined by the then-current Rule 13 of the Federal Rules of Civil Procedure) within the same proceeding as the claim to which it relates. Any such claim which is not submitted or filed in such proceeding will be forever barred.
  • 11.8.3 Any arbitration must be on an individual basis and the parties and the arbitrator will have no authority or power to proceed with any claim as a class action, associational

action, or otherwise to join or consolidate any claim with any claim or any other proceeding involving third-parties.

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

What This Means (2025 FDD)

According to Augusta Lawn Care's 2025 Franchise Disclosure Document, any arbitration between a franchisee and Augusta Lawn Care will take place in Whatcom County, Washington, or at another location designated by Augusta Lawn Care. The arbitration is to be administered by the American Arbitration Association (AAA) and will follow its Commercial Arbitration Rules. The arbitrator is required to have substantial experience in franchise law.

This means that franchisees may be required to travel to Washington State for arbitration, which could increase costs. Franchisees are also unable to consolidate claims with other parties or pursue class action claims. The arbitrator must follow the law and cannot disregard the terms of the franchise agreement.

The arbitrator has the authority to issue summary orders, temporary restraining orders, preliminary injunctions, and other forms of relief. Both parties must adhere to the arbitrator's orders, which can be enforced by any court with jurisdiction. The arbitrator also has subpoena powers limited by Washington State law.

It is important for prospective franchisees to understand the implications of the arbitration clause, including the location of the proceedings and the limitations on the arbitrator's powers. Franchisees should consult with an attorney to fully understand their rights and obligations under the franchise agreement.

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.