What is the exception to the arbitration requirement for Augusta Lawn Care?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
award more detailed than a reasoned award, i.e. "findings of facts and conclusions of law," You shall bear the entire additional cost required for such award, which cost is above the cost for a reasoned award.
- 11.8.13 Should Augusta Lawn Care prevail in any arbitration, the Arbitrator shall require You to pay all expenses of Arbitration, as well as Augusta Lawn Care's attorneys' fees and costs.
11.9 Exceptions to Arbitration and Mediation
- 11.9.1 Notwithstanding the provisions of Sections 11.7 and 11.8 of this Agreement, Augusta Lawn Care shall be entitled, with a bond of not more than $10,000, to the entry of temporary, preliminary and permanent injunctions, and orders of specific performance, enforcing the provisions of this Agreement in any court of competent jurisdiction relating to: (a) Your, and/or any of Your Related Party's use of the Marks; (b) Your confidentiality covenants (Section 8); (c) Your obligations upon termination or expiration of the franchise; or (d) Transfer or assignment by You. If Augusta Lawn Care secures any such injunction (i.e. temporary restraining order, preliminary injunction, or permanent injunction) or order of specific performance, you agree to pay to Augusta Lawn Care an amount equal to the aggregate of Augusta Lawn Care's costs of obtaining such relief including, without limitation, reasonable attorneys' fees, costs of investigation and proof of facts, court costs, other litigation expenses, travel and living expenses, and any damages incurred by Augusta Lawn Care as a result of the breach of any such provision.
- 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
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, there are exceptions to the arbitration and mediation requirements outlined in Sections 11.7 and 11.8 of the franchise agreement. Specifically, Augusta Lawn Care is entitled to seek temporary, preliminary, and permanent injunctions and orders of specific performance in any court of competent jurisdiction to enforce certain provisions of the agreement. To do so, Augusta Lawn Care must post a bond of no more than $10,000.
The types of provisions that Augusta Lawn Care can seek injunctive relief for include: issues relating to the franchisee's or their related party's use of Augusta Lawn Care's trademarks, the franchisee's confidentiality obligations as described in Section 8 of the agreement, the franchisee's obligations upon termination or expiration of the franchise agreement, and any unauthorized transfer or assignment by the franchisee. If Augusta Lawn Care obtains such an injunction or order of specific performance, the franchisee is responsible for covering Augusta Lawn Care's costs, including reasonable attorney's fees, investigation costs, court costs, litigation expenses, travel, living expenses, and any damages incurred due to the breach.
Additionally, Augusta Lawn Care can elect to bypass mediation and arbitration for specific types of claims. These include claims related to the franchisee's failure to pay fees owed to Augusta Lawn Care under the agreement, claims concerning the franchisee's use of the proprietary marks and the system (including claims for violations of the Lanham Act), and claims related to a breach of the franchisee's confidentiality obligations under the agreement. This means that Augusta Lawn Care can pursue these claims directly in court rather than through arbitration or mediation.