Who pays for the costs of arbitration with Augusta Lawn Care?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
| o. Our option to purchase your business | Section 9.4 | We or our designee may, but are not required to, purchase your inventory and equipment at the lesser of the fair market value or depreciated value, if franchise is terminated for any reason. |
|---|---|---|
| p. Your death or disability | Section 9.5 | Heirs or beneficiaries must demonstrate within 90 days ability to operate franchise. Otherwise, franchise must be assigned by estate to approved buyer within six (6) months. |
| Non-competition covenants during the | Not Applicable | Not Applicable |
| q. | ||
| term of the franchise | ||
| Non-competition covenants after the | Not Applicable | Not Applicable |
| r. franchise expires, is terminated, or is not | ||
| renewed | ||
| s. Modification of the franchise agreement | Section 11.4 | No modification, generally, unless on consent of both parties, but Operations Manual subject to change. |
| t. Integration/merger clause | Section 11.6 | Only the terms of the Franchise Agreement are binding (subject to this Disclosure Document and applicable state law). Any other promises may not be enforceable. |
| Dispute resolution by arbitration or u. mediation | Sections 11.7 and 11.8 | Except for certain claims, claims must first be mediated prior to arbitration or litigation. All disputes must be litigated in Washington. The arbitration will occur with each respective party paying their own costs. |
| v. Choice of forum | Section 11.2.2 | Arbitration in Whatcom County, Washington, or, if litigated, the Whatcom County District Court, or United States District Court for the Western District of Washington. Subject to applicable state law. |
| w. Choice of law | Section 11.2.1 | Washington law applies. Subject to applicable state law. |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 35–38)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, in the event of a dispute requiring arbitration, each party is responsible for covering their own costs. This is detailed in Section 11.7 and 11.8 of the franchise agreement, which also specifies that mediation must occur before arbitration or litigation, except for certain claims. All disputes, whether mediated, arbitrated, or litigated, must occur in Washington.
This arrangement means that a franchisee entering into a dispute with Augusta Lawn Care will need to budget for their own legal and arbitration expenses. This includes attorney fees, expert witness fees, and any other costs associated with presenting their case. The franchisee should be aware that regardless of the outcome of the arbitration, they will not be reimbursed for these costs by Augusta Lawn Care.
The FDD also specifies that the arbitration will take place in Whatcom County, Washington, or if litigated, in the Whatcom County District Court, or United States District Court for the Western District of Washington. Furthermore, Washington law applies to the agreement, subject to applicable state law. This means that franchisees may need to hire legal counsel familiar with Washington law, potentially increasing their expenses.
It is fairly common in franchising for each party to bear their own arbitration costs. Prospective Augusta Lawn Care franchisees should consider these potential costs and ensure they have sufficient financial resources to cover them if a dispute arises. Understanding these financial responsibilities is crucial for making an informed decision about investing in an Augusta Lawn Care franchise.