Does the right of Augusta Lawn Care to seek an injunction apply to breaches of confidentiality covenants?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
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; or (d) Transfer or assignment by You. If Augusta Lawn Care secures any such injunction (i.e. temporary restraining order, preliminary injunction, or permanent injunction) or order of specific performance, you agree to pay to Augusta Lawn Care an amount equal to the aggregate of Augusta Lawn Care's costs of obtaining such relief including, without limitation, reasonable attorneys' fees, costs of investigation and proof of facts, court costs, other litigation expenses, travel and living expenses, and any damages incurred by Augusta Lawn Care as a result of the breach of any such provision.
- 11.9.2 Further, at the election of Augusta Lawn Care or its affiliate, the mediation and arbitration provisions of Sections 11.7 and 11.8, inclusive of all subparts, shall not apply to: (a) any claim by Augusta
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, Augusta Lawn Care is entitled to seek injunctions for breaches of confidentiality covenants. Specifically, Augusta Lawn Care can pursue temporary, preliminary, and permanent injunctions, as well as orders of specific performance, in any court with jurisdiction to enforce the franchise agreement provisions related to a franchisee's confidentiality obligations as stated in Section 8 of the agreement.
This right allows Augusta Lawn Care to act swiftly to prevent further disclosure or misuse of confidential information, which is crucial for maintaining its competitive advantage and protecting its proprietary system. The FDD also specifies that Augusta Lawn Care can seek these injunctions with a bond of no more than $10,000.
Moreover, if Augusta Lawn Care successfully obtains an injunction, the franchisee is responsible for covering all associated costs, including reasonable attorney's fees, investigation expenses, court costs, and any damages incurred by Augusta Lawn Care due to the breach. This financial responsibility serves as a deterrent against violating confidentiality agreements and underscores the seriousness with which Augusta Lawn Care treats such breaches.
In addition to seeking injunctive relief, Augusta Lawn Care has the option to exclude claims related to breaches of confidentiality obligations from the standard mediation and arbitration provisions outlined in the agreement. This allows Augusta Lawn Care to pursue these claims directly in court, potentially expediting the resolution process and ensuring stricter enforcement of confidentiality terms.