Does the Principal Owner's Guaranty for Augusta Lawn Care cover the cost of expert witnesses?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
related to your act or omission, the act or omission of any of your Related Parties, employees, agents or representatives, the Augusta Lawn Care Business's operation, the business you conduct under this Agreement, or your breach of this Agreement, including, without limitation, those alleged to be caused by the Indemnified Party's negligence, unless (and then only to the extent that) the claims obligations, or damages are determined to be caused solely by our gross negligence or willful misconduct in a final, unappealable ruling issued by a court with competent jurisdiction. For purposes of this indemnification, claims include all obligations, damages (actual, consequential, or otherwise), and costs that any Indemnified Party reasonably incurs in defending any claim against it, including, without limitation, reasonable accountants , arbitrators, attorneys' fees, and expert witness fees costs of investigation and proof of facts, court costs, travel and living expenses, and other expenses of litigation, arbitration, or alternative dispute resolution, regardless of whether litigation arbitration or alternative dispute resolution is commenced. Each Indemnified Party may defend any claim against it at your expense and agree to settlements or take any other remedial, corrective, or other actions. This indemnity will continue in full force and effect subsequent to and notwithstanding this Agreement's expiration or termination. An Indemnified Party need not seek recovery from any insurer or other third-party, or otherwise mitigate its losses and expenses, in order to maintain and recover fully a claim against you under this subparagraph. You agree that a failure to pursue a recovery or mitigate a loss will not reduce or alter the amounts that an Indemnified Party may recover from you under this paragraph. Without limiting the foregoing, if Augusta Lawn Care is made a party to a legal proceeding in connection with Your act or omission, Augusta Lawn Care may hire counsel to protect its interests and bill You for all costs and expenses incurred by Augusta Lawn Care. You shall promptly reimburse Augusta Lawn Care for such costs and expenses.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to the 2025 Augusta Lawn Care Franchise Disclosure Document, the guaranty signed by the principal owner does cover expert witness fees in certain situations. Specifically, franchisees are required to indemnify Augusta Lawn Care against claims arising from their operation of the business or breach of the franchise agreement. This indemnification extends to all costs incurred in defending against claims, including expert witness fees.
This means that if Augusta Lawn Care is sued as a result of something the franchisee or their business does (or fails to do), the franchisee is responsible for covering Augusta Lawn Care's legal expenses. These expenses include not only attorney's fees and court costs, but also the fees charged by expert witnesses that Augusta Lawn Care might need to hire as part of its defense. The franchisee's obligation to cover these costs exists regardless of whether a lawsuit or arbitration is formally commenced.
However, the franchisee is not responsible for these costs if the claims, obligations, or damages are determined to be caused solely by Augusta Lawn Care's gross negligence or willful misconduct. This provides a limited exception to the franchisee's indemnification obligations. It is important to note that Augusta Lawn Care is not obligated to seek recovery from any insurer or mitigate its losses before seeking indemnification from the franchisee.
Furthermore, if Augusta Lawn Care is involved in a legal proceeding due to the franchisee's actions or omissions, Augusta Lawn Care has the right to hire its own counsel to protect its interests and bill the franchisee for all associated costs and expenses. This underscores the importance of franchisees operating their Augusta Lawn Care business responsibly and in compliance with the franchise agreement to avoid potentially significant legal expenses.