Who is responsible for paying the costs of arbitration in an Augusta Lawn Care franchise dispute?
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.
- 11.8.12 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.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 32–35)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, the responsibility for covering arbitration expenses depends on the outcome and the type of award requested. Generally, if Augusta Lawn Care prevails in arbitration, the franchisee is responsible for paying all arbitration expenses, including Augusta Lawn Care's attorney's fees and costs. Augusta Lawn Care also reserves the right to advance the franchisee's share of arbitration costs to ensure the proceedings take place, without waiving their right to seek reimbursement from the franchisee.
If either party requests an arbitration award that is more detailed than a standard reasoned award, such as one with specific findings of fact and conclusions of law, the costs associated with the more detailed award are allocated differently. Should Augusta Lawn Care request the more detailed award, the parties will evenly split the excess cost above the cost required for a reasoned award. However, if the franchisee requests the more detailed award, they are responsible for bearing the entire additional cost.
This arrangement means a prospective Augusta Lawn Care franchisee could face significant expenses in case of a dispute that goes to arbitration, especially if they lose. It also incentivizes franchisees to carefully consider the potential costs before requesting a more detailed arbitration award. Franchisees should be aware of these financial implications and consider them when making decisions about dispute resolution.