In the Augusta Lawn Care release, what is the 'prevailing party' entitled to recover in a legal action?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
If legal action or arbitration is necessary, including any motion to compel arbitration, or action on appeal, to enforce the terms and conditions of this Agreement, or for violation of this Agreement, Augusta Lawn Care will be entitled to recover reasonable compensation for preparation, investigation costs, court costs, arbitral costs, and reasonable accountants, attorneys, attorneys' assistants, and expert witness fees incurred by Augusta Lawn Care. Further, if Augusta Lawn Care is required to engage legal counsel in connection with any failure by You to comply with this Agreement, You shall reimburse Augusta Lawn Care for any of the above-listed costs and expenses incurred by Augusta Lawn Care, regardless of whether Augusta Lawn Care files or compels mediation, arbitration or litigation.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to the 2025 Augusta Lawn Care Franchise Disclosure Document, if legal action or arbitration is necessary to enforce the terms and conditions of the Franchise Agreement, Augusta Lawn Care is entitled to recover reasonable compensation for preparation, investigation costs, court costs, arbitral costs, and reasonable accountants, attorneys, attorneys' assistants, and expert witness fees incurred by Augusta Lawn Care. This applies to any motion to compel arbitration, or action on appeal, or for violation of the agreement.
Furthermore, if Augusta Lawn Care is required to engage legal counsel due to a franchisee's failure to comply with the agreement, the franchisee must reimburse Augusta Lawn Care for the costs and expenses incurred, regardless of whether Augusta Lawn Care initiates mediation, arbitration, or litigation. This includes the costs and expenses listed above.
This section of the FDD outlines the financial responsibilities of the franchisee in the event of a legal dispute, potentially adding significant costs beyond the initial franchise investment. It is important for prospective franchisees to understand these potential liabilities and factor them into their financial planning. Franchisees should make every effort to comply with the franchise agreement to avoid such costs.