What must Augusta Lawn Care demonstrate to a court to be entitled to an injunction against a franchisee?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
any fee due to Augusta Lawn Care under this Agreement; and/or (b) any claim by Augusta Lawn Care or its affiliate relating to use of the Proprietary Marks and/or the System, including, without limitation, claims for violations of the Lanham Act; and/or (c) any claim by Augusta Lawn Care relating to a breach of your confidentiality obligations under this Agreement.
11.10 Injunctive Remedy for Breach
You recognize that You are a member of a Franchise Network and that Your acts and omissions may have a positive or negative effect on the success of other businesses operating under Augusta
Lawn Care's Trade Name and in association with its Marks. Failure on the part of a single franchisee to comply with the terms of its franchise agreement is likely to cause irreparable damage to Augusta Lawn Care and to some or all of the other franchisees of Augusta Lawn Care. For this reason, You agree that if Augusta Lawn Care can demonstrate to a court of competent jurisdiction that there is a substantial likelihood of Your breach or threatened breach of any of the terms of this Agreement, Augusta Lawn Care will be entitled to an injunction restraining the breach or to a decree of specific performance, without showing or proving any actual damage and without the necessity of posting bond or other security, any bond or other security being waived hereby. Franchisor has the exclusive right to seek relief pursuant to this section in a court of compete
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, to be entitled to an injunction against a franchisee, Augusta Lawn Care must demonstrate to a court of competent jurisdiction that there is a substantial likelihood of the franchisee's breach or threatened breach of any of the terms of the Franchise Agreement. If this demonstration is successful, Augusta Lawn Care is entitled to an injunction restraining the breach or a decree of specific performance.
Importantly, Augusta Lawn Care does not need to show or prove any actual damage to obtain the injunction. Furthermore, the franchisee waives the necessity of Augusta Lawn Care posting a bond or other security. However, if a court determines that a bond or other security is required, the franchisee agrees not to seek a bond or security in excess of $10,000 and will oppose any effort by a Court to impose a bond or security greater than that amount.
This clause is significant for prospective franchisees as it outlines the relative ease with which Augusta Lawn Care can obtain an injunction against them. The franchisee essentially agrees to a streamlined process where Augusta Lawn Care only needs to demonstrate a likely breach, not actual damages, and the franchisee also limits their ability to require a substantial bond from Augusta Lawn Care. This could put franchisees at a disadvantage in disputes with the franchisor.