Who pays the costs of arbitration for Augusta Lawn Care franchise disputes?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
law, the entire arbitration proceedings (including but not limited to, any rulings, decisions or orders of the arbitrator), will remain confidential and will not be disclosed to anyone other than the parties to this Agreement.
11.8.10 The judgment of the arbitrator on any preliminary or final arbitration award will be final and binding and may be entered in any court having jurisdiction.
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.
11.8.12 The Arbitrator shall render a reasoned award unless otherwise requested by the parties. If Augusta Lawn Care requests a more detailed award, i.e. "findings of fact and conclusions of law," the parties shall evenly split the excess cost above the cost required for a reasoned award. However, if You request an award more detailed than a reasoned award, i.e. "findings of facts and conclusions of law," You shall bear the entire additional cost required for such award, which cost is above the cost for a reasoned award.
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.
11.9 Exceptions to Arbitration and Mediation
- 11.9.1 Notwithstanding the provisions of Sections 11.7 and 11.8 of this Agreement, Augusta Lawn Care shall be entitled, with a bond of not more than $10,000, to the entry of temporary, preliminary and permanent injunctions, and orders of specific performance, enforcing the provisions of this Agreement in any court of competent jurisdiction relating to: (a) Your, and/or any of Your Related Party's use of the Marks; (b) Your confidentiality covenants (Section 8); (c) Your obligations upon termination or expiration of the franchise;
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 32–35)
What This Means (2025 FDD)
According to the 2025 Augusta Lawn Care FDD, the costs of arbitration depend on the circumstances and the outcome of the arbitration. Generally, Augusta Lawn Care reserves the right to advance the franchisee's share of arbitration costs to ensure the proceedings take place, but this does not waive their right to seek recovery of these costs from the franchisee later.
If Augusta Lawn Care prevails in the arbitration, the arbitrator can require the franchisee to pay all arbitration expenses, including Augusta Lawn Care's attorney's fees and costs. Additionally, if either party requests a more detailed award with "findings of fact and conclusions of law," the responsibility for the excess cost above the standard "reasoned award" depends on who made the request. If Augusta Lawn Care requests the detailed award, the parties split the excess cost evenly. However, if the franchisee requests the more detailed award, the franchisee bears the entire additional cost.
In situations where legal action or arbitration is necessary for Augusta Lawn Care to enforce the franchise agreement, Augusta Lawn Care is entitled to recover reasonable compensation for preparation, investigation costs, court costs, arbitral costs, and fees for accountants, attorneys, assistants, and expert witnesses. Furthermore, if Augusta Lawn Care needs to engage legal counsel due to the franchisee's failure to comply with the agreement, the franchisee must reimburse Augusta Lawn Care for all associated costs and expenses, regardless of whether mediation, arbitration, or litigation is formally pursued.