Does the arbitrator have the power to disregard the terms of the Augusta Lawn Care franchise agreement?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.8.4 The arbitrator must follow the law and not disregard the terms of this Agreement.
The arbitrator may not consider any settlement discussions or offers that might have been made by either you or Augusta Lawn Care.
The arbitrator may not, under any circumstance, (a) stay the effectiveness of any pending termination of this Agreement, (b) assess punitive or exemplary damages, (c) certify a class or a consolidated action, or (d) make any award which extends, modifies or suspends any lawful term of this Agreement, or any reasonable standard of business performance that Augusta Lawn Care sets.
The arbitrator will have the right to make a determination as to any procedural matters as would a court of competent jurisdiction be permitted to make in the state in which the main office of Augusta Lawn Care is located.
The arbitrator will also decide any factual, procedural, or legal questions relating in any way to the dispute between the parties, including, but not limited to, any decision as to whether Section 11.8 is applicable and enforceable as against the parties, subject matter, timeliness, scope, remedies, unconscionability, and any alleged fraud in the inducement.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, the arbitrator does not have the power to disregard the terms of the franchise agreement. Specifically, the FDD states that the arbitrator must follow the law and not disregard the terms of the agreement. This provision ensures that the arbitrator's decisions are grounded in the legal framework and the contractual obligations agreed upon by both Augusta Lawn Care and the franchisee.
Furthermore, the arbitrator is explicitly prohibited from taking certain actions that could effectively alter the agreement. The arbitrator cannot stay the effectiveness of any pending termination of the agreement, assess punitive or exemplary damages, certify a class or a consolidated action, or make any award which extends, modifies, or suspends any lawful term of the agreement or any reasonable standard of business performance that Augusta Lawn Care sets. These limitations are designed to protect the integrity of the franchise agreement and prevent the arbitrator from imposing terms or conditions that were not originally agreed upon.
However, the arbitrator does have the authority to make determinations on procedural matters, factual issues, and legal questions related to the dispute. This includes deciding on the applicability and enforceability of the arbitration section itself, as well as issues related to subject matter, timeliness, scope, remedies, unconscionability, and any alleged fraud in the inducement. The arbitrator can also issue summary orders and provide for various forms of relief, such as temporary restraining orders and injunctions, ensuring that they can address the immediate needs of the parties involved while adhering to the agreement's original terms.