Where must disputes with Augusta Lawn Care be litigated?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
11.8 Arbitration
Except as provided in Section 11.9, and if not resolved by the negotiation and mediation procedures described in Section 11.7 above, any dispute, controversy, or claim between you and/or any of your Related Parties, on the one hand, and Augusta Lawn Care and/or any of Augusta Lawn Care's Related Parties, on the other hand, including, without limitation, any dispute, controversy, or claim arising under, out of in connection with or related to: (a) this Agreement; (b) the relationship of the parties; (c) the events leading up to the execution of this Agreement; (d) any loan or other finance arrangement between you and Augusta Lawn Care or its Related Parties; (e) the parties' relationship; (f) any System standard; (g) any claim based in tort or any theory of negligence; and/or (j) the scope or validity of the arbitration obligation under this Agreement, shall be determined in Whatcom County, Washington, by the American Arbitration Association ("AAA"). This arbitration clause will not deprive Augusta Lawn Care of any right it may otherwise have to seek provisional injunctive relief from a court of competent jurisdiction.
- 11.8.1 The arbitration will be administered by the AAA pursuant to its Commercial Arbitration Rules then in effect by one (1) arbitrator. The arbitrator shall be an attorney with substantial experience in franchise law. If proper notice of any hearing has been given, the arbitrator will have full power to proceed to take evidence or to perform any other acts necessary to arbitrate the matter in the absence of any party who fails to appear.
- 11.8.2 In connection with any arbitration proceeding, each party will submit or file any claim which would constitute a compulsory counterclaim (as defined by the then-current Rule 13 of the Federal Rules of Civil Procedure) within the same proceeding as the claim to which it relates. Any such claim which is not submitted or filed in such proceeding will be forever barred.
- 11.8.3 Any arbitration must be on an individual basis and the parties and the arbitrator will have no authority or power to proceed with any claim as a class action, associational
action, or otherwise to join or consolidate any claim with any claim or any other proceeding involving third-parties. If a court or arbitrator determines that this limitation on joinder of, or class action certification of claims is unenforceable then the agreement to arbitrate the dispute will be null and void and the parties must submit all claims to the jurisdiction of the courts in accordance with Section 11.8. The arbitration must take place in Whatcom County, Washington, or at such other location as Augusta Lawn Care designates.
- 11.8.4 The arbitrator must follow the law and not disregard the terms of this Agreement.
The arbitrator may not consider any settlement discussions or offers that might have been made by either you or Augusta Lawn Care.
The arbitrator may not, under any circumstance, (a) stay the effectiveness of any pending termination of this Agreement, (b) assess punitive or exemplary damages, (c) certify a class or a consolidated action, or (d) make any award which extends, modifies or suspends any lawful term of this Agreement, or any reasonable standard of business performance that Augusta Lawn Care sets.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 32–35)
What This Means (2025 FDD)
According to the 2025 FDD, disputes with Augusta Lawn Care must be determined in Whatcom County, Washington. Specifically, any dispute, controversy, or claim between a franchisee and Augusta Lawn Care related to the franchise agreement, the relationship of the parties, events leading up to the agreement, loan arrangements, system standards, tort claims, or the validity of the arbitration obligation will be settled in Whatcom County, Washington. This will be handled by the American Arbitration Association (AAA).
The arbitration will be managed by the AAA, following its Commercial Arbitration Rules, and will involve one arbitrator who is an attorney with substantial experience in franchise law. The arbitrator has the authority to proceed and take evidence even if a party fails to appear, provided proper notice of the hearing was given. The arbitration clause does not prevent Augusta Lawn Care from seeking provisional injunctive relief from a court of competent jurisdiction.
Any arbitration must be conducted on an individual basis, meaning class actions or multi-party actions are not allowed. The arbitrator cannot certify a class or consolidated action. If a court or arbitrator determines that the limitation on class action certification is unenforceable, the agreement to arbitrate becomes void, and the parties must submit all claims to the courts according to Section 11.8 of the agreement. The arbitrator's powers are also limited; they cannot stay the termination of the agreement, assess punitive damages, or modify any lawful term of the agreement.