Must the arbitrator render a reasoned award in Augusta Lawn Care arbitrations?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.8.12 The Arbitrator shall render a reasoned award unless otherwise requested by the parties. If Augusta Lawn Care requests a more detailed award, i.e. "findings of fact and conclusions of law," the parties shall evenly split the excess cost above the cost required for a reasoned award. However, if You request an award more detailed than a reasoned award, i.e. "findings of facts and conclusions of law," You shall bear the entire additional cost required for such award, which cost is above the cost for a reasoned award.
- 11.8.13 Should Augusta Lawn Care prevail in any arbitration, the Arbitrator shall require You to pay all expenses of Arbitration, as well as Augusta Lawn Care's attorneys' fees and costs.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to the 2025 FDD, in Augusta Lawn Care arbitrations, the arbitrator is required to provide a reasoned award unless both parties request otherwise. If Augusta Lawn Care wants a more detailed award that includes findings of fact and conclusions of law, the parties will evenly split the excess cost above what is required for a reasoned award. However, if the franchisee requests a more detailed award, they will bear the entire additional cost.
This means that franchisees can expect a basic level of explanation for the arbitrator's decision. However, if a franchisee wants a more in-depth explanation, they should be prepared to pay extra for it. This is a fairly common arrangement in franchising, as more detailed legal findings require additional work by the arbitrator.
It is important to note that if Augusta Lawn Care prevails in the arbitration, the arbitrator shall require the franchisee to pay all expenses of arbitration, as well as Augusta Lawn Care's attorneys' fees and costs. This could create a significant financial risk for the franchisee if they lose the arbitration.