Does the exception to arbitration and mediation for Augusta Lawn Care extend to its affiliates?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.9.2 Further, at the election of Augusta Lawn Care or its affiliate, the mediation and arbitration provisions of Sections 11.7 and 11.8, inclusive of all subparts, shall not apply to: (a) any claim by Augusta Lawn Care relating to your failure to pay 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.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to the 2025 FDD, the exceptions to arbitration and mediation for Augusta Lawn Care do extend to its affiliates under certain conditions. Specifically, Augusta Lawn Care or its affiliate can elect not to apply the mediation and arbitration provisions in certain situations.
This election applies to claims by Augusta Lawn Care or its affiliate relating to the franchisee's failure to pay fees due under the agreement. It also applies to claims relating to the use of proprietary marks and the system, including claims for violations of the Lanham Act. Additionally, it covers claims by Augusta Lawn Care relating to a breach of the franchisee's confidentiality obligations under the agreement.
This means that Augusta Lawn Care and its affiliates have the option to pursue legal action in court rather than mediation or arbitration for these specific types of claims. This could potentially give Augusta Lawn Care and its affiliates a strategic advantage in resolving disputes related to these issues, as court proceedings may offer different legal remedies or procedures compared to mediation or arbitration.