What rights does the guarantor of an Augusta Lawn Care franchise waive?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
11.15 Waiver of Rights
THE PARTIES HERETO AND EACH OF THEM KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY AGREE AS FOLLOWS:
- 11.15.1 Jury Trial. The parties hereto and each of them EXPRESSLY WAIVE(S) THE RIGHT ANY MAY HAVE TO A TRIAL BY JURY IN ANY ARBITRATION, ACTION, PROCEEDING, OR COUNTERCLAIM, WHETHER AT LAW OR IN EQUITY, INCLUDING, WITHOUT LIMITATION, FOR ANY CLAIMS RELATING DIRECTLY OR INDIRECTLY TO THIS AGREEMENT, THE NEGOTIATION OF THIS AGREEMENT, THE EVENTS LEADING UP TO THE SIGNING OF THIS AGREEMENT, OR THE BUSINESS RELATIONSHIP RELATING TO THIS AGREEMENT OR THE FRANCHISE, WHETHER BROUGHT IN STATE OR FEDERAL COURT, WHETHER BASED IN CONTRACT THEORY, NEGLIGENCE OR TORT, AND REGARDLESS OF WHETHER OR NOT THERE ARE OTHER PARTIES IN SUCH ACTION OR PROCEEDING. This waiver is effective even if a court of competent jurisdiction decides that the arbitration provision in Section 11.8 is unenforceable. Each party acknowledges that it has had full opportunity to consult with counsel concerning this waiver, and that this waiver is informed, voluntary, intentional, and not the result of unequal bargaining power.
- 11.15.2 Damages Waiver. The parties hereto and each of them EXPRESSLY WAIVE(S) ANY CLAIM FOR PUNITIVE, MULTIPLE AND/OR EXEMPLARY DAMAGES, except that this waiver and limitation shall not apply with respect to (a) your obligation to indemnify Augusta Lawn Care pursuant to any provision of this Agreement, and/or (b) any claims Augusta Lawn Care brings against you and/or your guarantors for unauthorized use of the Marks, unauthorized use or disclosure of any Confidential Information, and any other cause of action under the Lanham Act and Augusta Lawn Care shall be entitled to receive an award of multiple damages, attorneys' fees and all damages as provided by law.
- 11.15.3 The parties hereto and each of them EXPRESSLY AGREE(S) THAT IN THE EVENT OF ANY FINAL DETERMINATION ADJUDICATION OR APPLICABLE ENACTMENT OF LAW THAT PUNITIVE MULTIPLE AND/OR EXEMPLARY DAMAGES MAY NOT BE WAIVED, ANY RECOVERY BY ANY PARTY IN ANY ARBITRATION OR OTHER FORUM SHALL NEVER EXCEED TWO (2) TIMES ACTUAL DAMAGES, except that AUGUSTA LAWN CARE may recover more than two (2)
times its actual damages if you commit acts of willful trademark infringement or otherwise violate the Lanham Act, as provided by law.
- 11.15.4 You hereby expressly waive any and all rights, actions or claims for relief under the Federal Act entitled "Racketeer Influenced and Corrupt Organizations," 18 U.S.C. § 1961, et seq. ("RICO").
- 11.15.5 You hereby expressly agree that the existence of any claims You may have against Augusta Lawn Care or its Related Parties, whether or not arising from this Agreement, shall not constitute a defense to the enforcement by Augusta Lawn Care of the covenants contained in this Agreement. You agree to pay all costs and expenses, including reasonable attorneys' fees, incurred by Augusta Lawn Care in connection with the enforcement of any covenant contained in this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to the 2025 Augusta Lawn Care FDD, both the franchisee and their guarantor(s) expressly waive certain rights. Specifically, they waive the right to a jury trial in any arbitration, action, proceeding, or counterclaim related to the franchise agreement. This waiver applies to claims at law or in equity, covering disputes about the agreement itself, its negotiation, events leading up to signing, or the business relationship. The waiver is effective even if the arbitration provision is deemed unenforceable.
Additionally, the guarantor waives any claim for punitive, multiple, or exemplary damages, with specific exceptions. This waiver does not apply to the franchisee's obligation to indemnify Augusta Lawn Care or to claims Augusta Lawn Care brings against the franchisee or their guarantors for unauthorized use of the Marks, confidential information, or actions under the Lanham Act. In these specific cases, Augusta Lawn Care is entitled to receive an award of multiple damages, attorneys' fees, and all damages as provided by law.
The guarantor also expressly agrees that if a final determination or applicable law prevents the waiver of punitive, multiple, or exemplary damages, any recovery by any party will not exceed two times the actual damages. However, Augusta Lawn Care can recover more than two times its actual damages if the franchisee commits willful trademark infringement or violates the Lanham Act. The guarantor also waives any rights, actions, or claims for relief under the Racketeer Influenced and Corrupt Organizations Act (RICO).
Finally, the guarantor agrees that any claims they may have against Augusta Lawn Care or its related parties will not be a defense against Augusta Lawn Care's enforcement of the covenants in the agreement. They also agree to pay all costs and expenses, including reasonable attorneys' fees, incurred by Augusta Lawn Care in enforcing any covenant in the agreement. These waivers are significant and should be carefully considered with legal counsel, as they limit the guarantor's legal recourse in case of disputes.