Under what circumstances is the punitive damages waiver not applicable to Augusta Lawn Care?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, franchisees waive any claim for punitive, multiple, and/or exemplary damages. However, this waiver does not apply under specific circumstances.
The waiver and limitation of damages do not apply to the franchisee's obligation to indemnify Augusta Lawn Care as per the agreement. This means that if Augusta Lawn Care incurs losses or liabilities due to the franchisee's actions, the franchisee may still be liable for punitive or other such damages in that specific instance.
Additionally, the waiver does not apply to any claims Augusta Lawn Care brings against the franchisee or their guarantors for unauthorized use of the Augusta Lawn Care Marks, unauthorized use or disclosure of any Confidential Information, and any other cause of action under the Lanham Act. In these cases, Augusta Lawn Care is entitled to receive an award of multiple damages, attorneys' fees, and all damages as provided by law. This protects Augusta Lawn Care's brand and proprietary information.
This clause ensures that while franchisees are generally protected from punitive damages, they are not shielded from the consequences of failing to meet their indemnification obligations or from misusing Augusta Lawn Care's intellectual property and confidential information.