What happens if negotiation and mediation fail before arbitration with Augusta Lawn Care?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
, view or opinion made in the mediation procedure is discoverable or admissible in evidence for any purpose, not even impeachment, in any proceeding involving either of the parties. However, evidence that would otherwise be discoverable or admissible will not be excluded from discovery or made inadmissible simply because of its use in the mediation.
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.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, if negotiation and mediation fail to resolve a dispute, the matter proceeds to arbitration. Specifically, any dispute between the franchisee and Augusta Lawn Care, including those related to the franchise agreement, the relationship of the parties, or any system standard, will be determined through arbitration in Whatcom County, Washington. This arbitration is managed by the American Arbitration Association (AAA) according to its Commercial Arbitration Rules, using one arbitrator who is an attorney with substantial experience in franchise law.
The arbitrator's judgment on any preliminary or final award is considered final and binding, and it can be entered in any court with jurisdiction. Augusta Lawn Care retains the right to seek provisional injunctive relief from a court, regardless of the arbitration clause. The arbitrator must follow the law and cannot disregard the terms of the Franchise Agreement. The arbitrator cannot assess punitive damages, certify a class action, or modify any lawful term of the agreement or any reasonable business performance standard set by Augusta Lawn Care.
Augusta Lawn Care also has the option to advance the franchisee's share of arbitration costs without waiving its right to seek recovery of these costs later. If Augusta Lawn Care prevails in arbitration, the franchisee is responsible for covering all arbitration expenses, including Augusta Lawn Care's attorney's fees and costs. This arbitration clause ensures disputes are resolved through a structured process, but it also highlights the franchisee's potential financial burden if they do not prevail.