Under what circumstances can Augusta Lawn Care recover more than two times its actual damages?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
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, Augusta Lawn Care can recover more than two times its actual damages if a franchisee commits acts of willful trademark infringement or otherwise violates the Lanham Act. This ability to recover more than actual damages is explicitly provided by law in such cases.
This provision serves as a strong deterrent against trademark infringement, which can significantly harm the Augusta Lawn Care brand and its reputation. The Lanham Act is a federal law that protects trademarks, and violations can result in substantial financial penalties. For a prospective franchisee, this means that protecting and properly using the Augusta Lawn Care trademarks is of utmost importance to avoid potentially significant financial liabilities.
It is important to note that outside of trademark and Lanham Act violations, the FDD includes a waiver where both parties agree to waive any claim for punitive, multiple, and/or exemplary damages. However, this waiver does not apply to the franchisee's obligation to indemnify Augusta Lawn Care or to any claims Augusta Lawn Care brings against the franchisee and/or their guarantors. This highlights the importance of franchisees understanding their indemnification obligations and the potential financial risks associated with breaching the franchise agreement or violating applicable laws.