Under Augusta Lawn Care's arbitration rules, what rules govern the arbitration process?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
, view or opinion made in the mediation procedure is discoverable or admissible in evidence for any purpose, not even impeachment, in any proceeding involving either of the parties. However, evidence that would otherwise be discoverable or admissible will not be excluded from discovery or made inadmissible simply because of its use in the mediation.
11.8 Arbitration
Except as provided in Section 11.9, and if not resolved by the negotiation and mediation procedures described in Section 11.7 above, any dispute, controversy, or claim between you and/or any of your Related Parties, on the one hand, and Augusta Lawn Care and/or any of Augusta Lawn Care's Related Parties, on the other hand, including, without limitation, any dispute, controversy, or claim arising under, out of in connection with or related to: (a) this Agreement; (b) the relationship of the parties; (c) the events leading up to the execution of this Agreement; (d) any loan or other finance arrangement between you and Augusta Lawn Care or its Related Parties; (e) the parties' relationship; (f) any System standard; (g) any claim based in tort or any theory of negligence; and/or (j) the scope or validity of the arbitration obligation under this Agreement, shall be determined in Whatcom County, Washington, by the American Arbitration Association ("AAA"). This arbitration clause will not deprive Augusta Lawn Care of any right it may otherwise have to seek provisional injunctive relief from a court of competent jurisdiction.
- 11.8.1 The arbitration will be administered by the AAA pursuant to its Commercial Arbitration Rules then in effect by one (1) arbitrator. The arbitrator shall be an attorney with substantial experience in franchise law. If proper notice of any hearing has been given, the arbitrator will have full power to proceed to take evidence or to perform any other acts necessary to arbitrate the matter in the absence of any party who fails to appear.
- 11.8.2 In connection with any arbitration proceeding, each party will submit or file any claim which would constitute a compulsory counterclaim (as defined by the then-current Rule 13 of the Federal Rules of Civil Procedure) within the same proceeding as the claim to which it relates. Any such claim which is not submitted or filed in such proceeding will be forever barred.
- 11.8.3 Any arbitration must be on an individual basis and the parties and the arbitrator will have no authority or power to proceed with any claim as a class action, associational
action, or otherwise to join or consolidate any claim with any claim or any other proceeding involving third-parties. If a court or arbitrator determines that this limitation on joinder of, or class action certification of claims is unenforceable then the agreement to arbitrate the dispute will be null and void and the parties must submit all claims to the jurisdiction of the courts in accordance with Section 11.8. The arbitration must take place in Whatcom County, Washington, or at such other location as Augusta Lawn Care designates.
- 11.8.4 The arbitrator must follow the law and not disregard the terms of this Agreement. The arbitrator may not consider any settlement discussions or offers that might have been made by either you or Augusta Lawn Care. The arbitrator may not, under any circumstance, (a) stay the effectiveness of any pending termination of this Agreement, (b) assess punitive or exemplary damages, (c) certify a class or a consolidated action, or (d) make any award which extends, modifies or suspends any lawful term of this Agreement, or any reasonable standard of business performance that Augusta Lawn Care sets. The arbitrator will have the right to make a determination as to any procedural matters as would a court of competent jurisdiction be permitted to make in the state in which the main office of Augusta Lawn Care is located. The arbitrator will also decide any factual, procedural, or legal questions relating in any way to the dispute between the parties, including, but not limited to, any decision as to whether Section 11.8 is applicable and enforceable as against the parties, subject matter, timeliness, scope, remedies, unconscionability, and any alleged fraud in the inducement.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, the arbitration process is governed by several rules. Any dispute between the franchisee and Augusta Lawn Care that cannot be resolved through negotiation and mediation will be determined by the American Arbitration Association (AAA) in Whatcom County, Washington. The arbitration will be administered by the AAA pursuant to its Commercial Arbitration Rules then in effect by one (1) arbitrator who is an attorney with substantial experience in franchise law.
In any arbitration proceeding, both parties must submit any claim which would constitute a compulsory counterclaim as defined by Rule 13 of the Federal Rules of Civil Procedure. Failure to do so will result in the claim being forever barred. The arbitration must be conducted on an individual basis, and the arbitrator lacks the authority to proceed with any claim as a class action. The arbitrator is obligated to follow the law and cannot disregard the terms of the Franchise Agreement. Settlement discussions or offers made by either party are not to be considered by the arbitrator.
The arbitrator has the authority to issue summary orders, temporary restraining orders, preliminary injunctions, and other equitable relief. Both parties consent to the enforcement of such orders by any court having jurisdiction. The arbitrator's subpoena powers are limited only by the laws of the State of Washington. The judgment of the arbitrator on any preliminary or final arbitration award will be final and binding and may be entered in any court having jurisdiction.
Augusta Lawn Care reserves the right to advance the franchisee's share of the arbitration costs but retains the right to seek recovery of those costs. The arbitrator will render a reasoned award unless otherwise requested by the parties. If Augusta Lawn Care requests a more detailed award, the parties will split the excess cost. However, if the franchisee requests a more detailed award, the franchisee will bear the entire additional cost. Should Augusta Lawn Care prevail in any arbitration, the franchisee will be required to pay all expenses of arbitration, as well as Augusta Lawn Care's attorneys' fees and costs.