What is Augusta Lawn Care's expectation regarding the outcome of the litigation?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Abraham Bilgoray v. Mike Andes, Augusta Franchise LLC, Augusta Franchise LLC Suite, and Augusta Lawn Care Corporation, Civil Action No. 7:25-cv-00584, pending in the United States District Court for the Southern District of New York (originally filed in the Supreme Court of New York, Rockland County, on December 16, 2024 and removed to federal court on January 21, 2025). Plaintiff is a former franchisee of Augusta Lawn Care that alleges fraud and negligent misrepresentation, based on a purported non-receipt of Augusta's pre-signing Franchise Disclosure Document (the "FDD"). Plaintiff therefore seeks rescission of contracts and restitution. Augusta moved to stay, transfer, and/or dismiss on multiple grounds, including: (i) Plaintiff's franchise agreement requires that he bring any claim before the American Arbitration Association ("AAA"); (ii) to the extent Plaintiff was not required to file his claim in the AAA, he was required to file suit in the United States District Court for the Western District of Washington; (iii) Plaintiff's claims are deficient under the Federal Rules of Civil Procedure; (iv) Plaintiff's fraud-based claims are without merit under the applicable documents; and (v) the applicable statute(s) of limitations bar Plaintiff's claims. Augusta denies any liability and is confident it will prevail in the litigation and recoup its attorneys' fees and costs incurred.
Source: Item 3 — LITIGATION (FDD pages 11–12)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, Augusta Lawn Care is currently involved in a legal dispute with a former franchisee. The dispute, Abraham Bilgoray v. Mike Andes, Augusta Franchise LLC, Augusta Franchise LLC Suite, and Augusta Lawn Care Corporation, Civil Action No. 7:25-cv-00584, is pending in the United States District Court for the Southern District of New York. The former franchisee alleges fraud and negligent misrepresentation based on not receiving Augusta's Franchise Disclosure Document before signing the agreement and seeks rescission of contracts and restitution. Augusta Lawn Care has responded by filing a motion to stay, transfer, and/or dismiss the case.
Augusta Lawn Care has presented several arguments in its defense, including that the franchise agreement requires claims to be brought before the American Arbitration Association (AAA) or, alternatively, in the United States District Court for the Western District of Washington. They also argue that the plaintiff's claims are deficient under the Federal Rules of Civil Procedure, without merit under the applicable documents, and barred by the statute of limitations.
Augusta Lawn Care explicitly denies any liability in this matter. The company states that it is confident it will prevail in the litigation. Furthermore, Augusta Lawn Care anticipates that it will recoup its attorneys' fees and costs incurred throughout the legal proceedings. This statement reflects a strong belief on the part of Augusta Lawn Care that their position will be upheld by the court.