factual

Does the damages waiver apply to Augusta Lawn Care's right to indemnification?

Augusta_Lawn_Care Franchise · 2025 FDD

Answer from 2025 FDD Document

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.

Source: Item 23 — RECEIPTS (FDD pages 44–184)

What This Means (2025 FDD)

According to the 2025 Augusta Lawn Care Franchise Disclosure Document, the damages waiver does not apply to Augusta Lawn Care's right to indemnification. Specifically, the agreement states that the waiver of punitive, multiple, and/or exemplary damages does not apply to the franchisee's obligation to indemnify Augusta Lawn Care under any provision of the agreement. This means that while the franchisee waives their right to claim certain types of damages from Augusta Lawn Care, this waiver does not extend to the franchisee's duty to cover Augusta Lawn Care's losses under the indemnification clauses.

This exception is significant for prospective Augusta Lawn Care franchisees because it clarifies that they remain fully responsible for indemnifying Augusta Lawn Care, even if a general damages waiver is in place. Indemnification typically covers losses, damages, and expenses that Augusta Lawn Care incurs due to the franchisee's actions or omissions. The franchisee could be responsible for covering Augusta Lawn Care's legal fees, settlement costs, and other related expenses if a claim arises that triggers the indemnification clause.

Furthermore, the damages waiver also does not apply to claims Augusta Lawn Care brings against the franchisee and/or their 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. In these specific cases, Augusta Lawn Care is entitled to receive an award of multiple damages, attorneys' fees and all damages as provided by law. This ensures that Augusta Lawn Care can seek full legal remedies against franchisees who infringe on their trademarks or misuse confidential information, reinforcing the protection of the brand's intellectual property and proprietary information.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.