What commitment do parties make regarding participation in Augusta Lawn Care's mediation proceedings?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
The parties have reached this Agreement in good faith and in the belief that it is mutually advantageous to them. In the same spirit of cooperation, they pledge to try to resolve any dispute without litigation or arbitration. Other than an action by Augusta Lawn Care under Section 11.9 of this Agreement, the parties agree that if any dispute arises between them, before beginning any legal action or arbitration to interpret or enforce this Agreement, they will first follow the procedures described in this section. Good faith participation in these procedures to the greatest extent reasonably possible, despite lack of cooperation by one or more of the other parties, is a precondition to maintaining any legal action or arbitration to interpret or enforce this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, both parties pledge to try to resolve any dispute without litigation or arbitration. Before beginning any legal action or arbitration to interpret or enforce the agreement (except for actions by Augusta Lawn Care under Section 11.9), both Augusta Lawn Care and the franchisee must first follow the negotiation and mediation procedures outlined in Section 11.7.
The agreement emphasizes 'good faith participation' in these procedures 'to the greatest extent reasonably possible,' even if one party is not fully cooperative. This good faith participation is explicitly stated as a 'precondition' to initiating or maintaining any legal action or arbitration aimed at interpreting or enforcing the Franchise Agreement.
This commitment to negotiation and mediation before resorting to legal action is a standard practice in franchising, intended to save both parties time and money. However, the FDD also outlines exceptions where Augusta Lawn Care can bypass mediation and arbitration, such as actions to obtain injunctions related to the franchisee's use of Augusta Lawn Care's marks, confidentiality covenants, or obligations upon termination of the franchise agreement.