What defense is allowed to the guarantor of an Augusta Lawn Care franchise regarding payments?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.15.5 You hereby expressly agree that the existence of any claims You may have against Augusta Lawn Care or its Related Parties, whether or not arising from this Agreement, shall not constitute a defense to the enforcement by Augusta Lawn Care of the covenants contained in this Agreement. You agree to pay all costs and expenses, including reasonable attorneys' fees, incurred by Augusta Lawn Care in connection with the enforcement of any covenant contained in this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to the 2025 Augusta Lawn Care Franchise Disclosure Document, a franchisee cannot use any claims against Augusta Lawn Care as a defense against the enforcement of the franchise agreement. This includes the guarantor of payments and performance.
Specifically, section 11.15.5 states that the existence of any claims the franchisee may have against Augusta Lawn Care or its related parties, even if those claims arise from the agreement itself, will not serve as a valid defense if Augusta Lawn Care seeks to enforce the covenants within the agreement. This means that even if an Augusta Lawn Care franchisee believes Augusta Lawn Care has breached the agreement, they still must meet their financial obligations, and cannot withhold payments as a means of protest or compensation.
This clause is significant for prospective Augusta Lawn Care franchisees because it limits their legal recourse in the event of a dispute with the franchisor. It emphasizes the importance of fulfilling all payment obligations regardless of any grievances the franchisee may have. Franchisees should seek legal counsel to fully understand the implications of this provision before signing the agreement.