Does the damages waiver in the Augusta Lawn Care agreement prevent claims for punitive damages?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.15.2 Damages Waiver. The parties hereto and each of them EXPRESSLY WAIVE(S) ANY CLAIM FOR PUNITIVE, MULTIPLE AND/OR EXEMPLARY DAMAGES, except that this waiver and limitation shall not apply with respect to (a) your obligation to indemnify Augusta Lawn Care pursuant to any provision of this Agreement, and/or (b) any claims Augusta Lawn Care brings against you and/or your guarantors for unauthorized use of the Marks, unauthorized use or disclosure of any Confidential Information, and any other cause of action under the Lanham Act and Augusta Lawn Care shall be entitled to receive an award of multiple damages, attorneys' fees and all damages as provided by law.
- 11.15.3 The parties hereto and each of them EXPRESSLY AGREE(S) THAT IN THE EVENT OF ANY FINAL DETERMINATION ADJUDICATION OR APPLICABLE ENACTMENT OF LAW THAT PUNITIVE MULTIPLE AND/OR EXEMPLARY DAMAGES MAY NOT BE WAIVED, ANY RECOVERY BY ANY PARTY IN ANY ARBITRATION OR OTHER FORUM SHALL NEVER EXCEED TWO (2) TIMES ACTUAL DAMAGES, except that AUGUSTA LAWN CARE may recover more than two (2) times its actual damages if you commit acts of willful trademark infringement or otherwise violate the Lanham Act, as provided by law.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to the 2025 Augusta Lawn Care Franchise Disclosure Document, the franchise agreement includes a damages waiver that generally prevents franchisees from claiming punitive, multiple, or exemplary damages. However, there are exceptions to this waiver.
The waiver does not apply to Augusta Lawn Care's right to indemnification from the franchisee as outlined in the agreement. Additionally, Augusta Lawn Care retains the right to pursue claims against the franchisee and their guarantors for unauthorized use of the brand's marks, confidential information, or for any cause of action under the Lanham Act. In these specific cases, Augusta Lawn Care is entitled to receive awards of multiple damages, attorneys' fees, and all damages as provided by law.
Furthermore, the agreement states that if a final determination or applicable law prevents the waiver of punitive, multiple, or exemplary damages, any recovery by any party will not exceed two times the actual damages. However, this limitation does not apply to Augusta Lawn Care, which may recover more than two times its actual damages if the franchisee commits acts of willful trademark infringement or violates the Lanham Act.