Does the damages waiver in the Augusta Lawn Care agreement apply to the franchisee's obligation to indemnify Augusta Lawn Care?

According to Augusta Lawn Care's 2025 Franchise Disclosure Document, the damages waiver does not apply to the franchisee's obligation to indemnify Augusta Lawn Care. Specifically, the franchise agreement states that the waiver of punitive, multiple, and/or exemplary damages does not apply to the franchisee's duty to indemnify Augusta Lawn Care as outlined in the agreement. This means that while franchisees waive their rights to claim certain types of damages from Augusta Lawn Care, this waiver does not extend to their obligation to cover Augusta Lawn Care's losses or costs in situations where indemnification is required under the franchise agreement.

This exception is significant for prospective Augusta Lawn Care franchisees because it clarifies that their indemnification responsibilities remain fully in effect, regardless of the damages waiver. Indemnification typically requires the franchisee to protect Augusta Lawn Care from losses, damages, or liabilities arising from the franchisee's actions, the operation of the Augusta Lawn Care business, or any breach of the franchise agreement. The franchisee could be responsible for covering Augusta Lawn Care's legal fees, settlement costs, and other expenses if a claim is made against Augusta Lawn Care due to the franchisee's actions.

The FDD also specifies that Augusta Lawn Care is entitled to seek multiple damages, attorneys' fees, and all damages as provided by law for unauthorized use of the Marks, unauthorized use or disclosure of any Confidential Information, and any other cause of action under the Lanham Act. This further emphasizes the importance of franchisees understanding their obligations and potential liabilities under the franchise agreement, particularly concerning intellectual property and confidential information. Franchisees should consult with legal counsel to fully understand the scope of their indemnification obligations and the potential financial implications.