Does Augusta Lawn Care have an obligation to advance the franchisee's share of arbitration costs?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.8.11 Augusta Lawn Care reserves the right, but has no obligation, to advance your share of the costs of any arbitration proceeding in order for such arbitration proceeding to take place and by doing so will not be deemed to have waived or relinquished Augusta Lawn Care's right to seek recovery of those costs against you.
- 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.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to the 2025 Augusta Lawn Care Franchise Disclosure Document, Augusta Lawn Care does not have an obligation to advance a franchisee's share of arbitration costs. However, Augusta Lawn Care reserves the right to advance the franchisee's share of the costs to ensure the arbitration proceeds.
Specifically, Augusta Lawn Care's decision to advance these costs does not constitute a waiver of their right to seek recovery of these costs from the franchisee later. This means that while Augusta Lawn Care may initially cover the franchisee's portion of the arbitration expenses, they retain the right to pursue reimbursement from the franchisee at a later time.
Furthermore, the FDD outlines that if Augusta Lawn Care prevails in any arbitration, the arbitrator is required to order the franchisee to cover all arbitration expenses, including Augusta Lawn Care's attorney's fees and costs. This provision underscores the franchisee's potential financial responsibility for arbitration costs, especially if the outcome favors Augusta Lawn Care.