Does the franchisee waive the right to claim punitive damages against Augusta Lawn Care?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
THE PARTIES HERETO AND EACH OF THEM KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY AGREE AS FOLLOWS:
- 11.15.1 Jury Trial. The parties hereto and each of them EXPRESSLY WAIVE(S) THE RIGHT ANY MAY HAVE TO A TRIAL BY JURY IN ANY ARBITRATION, ACTION, PROCEEDING, OR COUNTERCLAIM, WHETHER AT LAW OR IN EQUITY, INCLUDING, WITHOUT LIMITATION, FOR ANY CLAIMS RELATING DIRECTLY OR INDIRECTLY TO THIS AGREEMENT, THE NEGOTIATION OF THIS AGREEMENT, THE EVENTS LEADING UP TO THE SIGNING OF THIS AGREEMENT, OR THE BUSINESS RELATIONSHIP RELATING TO THIS AGREEMENT OR THE FRANCHISE, WHETHER BROUGHT IN STATE OR FEDERAL COURT, WHETHER BASED IN CONTRACT THEORY, NEGLIGENCE OR TORT, AND REGARDLESS OF WHETHER OR NOT THERE ARE OTHER PARTIES IN SUCH ACTION OR PROCEEDING. This waiver is effective even if a court of competent jurisdiction decides that the arbitration provision in Section 11.8 is unenforceable. Each party acknowledges that it has had full opportunity to consult with counsel concerning this waiver, and that this waiver is informed, voluntary, intentional, and not the result of unequal bargaining power.
- 11.15.2 Damages Waiver. The parties hereto and each of them EXPRESSLY WAIVE(S) ANY CLAIM FOR PUNITIVE, MULTIPLE AND/OR EXEMPLARY DAMAGES, except that this waiver and limitation shall not apply with respect to (a) your obligation to indemnify Augusta Lawn Care pursuant to any provision of this Agreement, and/or (b) any claims Augusta Lawn Care brings against you and/or your guarantors for unauthorized use of the Marks, unauthorized use or disclosure of any Confidential Information, and any other cause of action under the Lanham Act and Augusta Lawn Care shall be entitled to receive an award of multiple damages, attorneys' fees and all damages as provided by law.
- 11.15.3 The parties hereto and each of them EXPRESSLY AGREE(S) THAT IN THE EVENT OF ANY FINAL DETERMINATION ADJUDICATION OR APPLICABLE ENACTMENT OF LAW THAT PUNITIVE MULTIPLE AND/OR EXEMPLARY DAMAGES MAY NOT BE WAIVED, ANY RECOVERY BY ANY PARTY IN ANY ARBITRATION OR OTHER FORUM SHALL NEVER EXCEED TWO (2) TIMES ACTUAL DAMAGES, except that AUGUSTA LAWN CARE may recover more than two (2)
times its actual damages if you commit acts of willful trademark infringement or otherwise violate the Lanham Act, as provided by law.
- 11.15.4 You hereby expressly waive any and all rights, actions or claims for relief under the Federal Act entitled "Racketeer Influenced and Corrupt Organizations," 18 U.S.C. § 1961, et seq. ("RICO").
- 11.15.5 You hereby expressly agree that the existence of any claims You may have against Augusta Lawn Care or its Related Parties, whether or not arising from this Agreement, shall not constitute a defense to the enforcement by Augusta Lawn Care of the covenants contained in this Agreement. You agree to pay all costs and expenses, including reasonable attorneys' fees, incurred by Augusta Lawn Care in connection with the enforcement of any covenant contained in this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, franchisees generally waive the right to claim punitive, multiple, and/or exemplary damages. However, this waiver does not apply to the franchisee's obligation to indemnify Augusta Lawn Care or to claims Augusta Lawn Care brings against the franchisee for unauthorized use of the Marks, unauthorized use or disclosure of Confidential Information, and any other cause of action under the Lanham Act. In these specific cases, Augusta Lawn Care is entitled to receive an award of multiple damages, attorneys' fees, and all damages as provided by law.
Furthermore, the FDD states that if a final determination or applicable law prevents the waiver of punitive, multiple, and/or exemplary damages, any recovery by any party in arbitration or other forum will not exceed two times the actual damages. An exception to this limitation is that Augusta Lawn Care may recover more than two times its actual damages if the franchisee commits acts of willful trademark infringement or otherwise violates the Lanham Act, as provided by law.
This waiver also includes any and all rights, actions, or claims for relief under the Federal Act entitled "Racketeer Influenced and Corrupt Organizations," 18 U.S.C. § 1961, et seq. ("RICO"). This means that franchisees are giving up their right to sue Augusta Lawn Care under RICO, which is a law designed to combat organized crime. This is a significant waiver that could limit a franchisee's legal options in the event of a dispute with Augusta Lawn Care.