What activities are considered 'Prohibited Activities' for an Augusta Lawn Care franchisee?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
"Prohibited Activities" means any or all of the following: (i) owning, operating or having any other interest (as an owner, partner, director, officer, employee, manager, consultant, shareholder, creditor, representative, agent or in any similar capacity) in a Competitive Business (other than owning an interest of five percent (5%) or less in a publicly traded company that is a Competitive Business) within a 25 mile radius of another Augusta Lawn Care business; (ii) diverting or attempting to divert any business from us (or one of our affiliates or franchisees); and/or (iii) inducing (a) any of our employees or managers (or those of our affiliates or franchisees) to leave their position or (b) any customer of ours (or of one of our affiliates or franchisees) to transfer their business to you or to any other person that is not then a franchisee of ours.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to the 2025 Augusta Lawn Care FDD, 'Prohibited Activities' are defined in the sample confidentiality agreement. These activities are restricted to prevent unfair competition and protect Augusta Lawn Care's interests.
Specifically, 'Prohibited Activities' include: (i) owning, operating, or having any interest in a Competitive Business within a 25-mile radius of another Augusta Lawn Care business (with a minor exception for owning 5% or less of a publicly traded competitor); (ii) diverting or attempting to divert business away from Augusta Lawn Care, its affiliates, or its franchisees; and/or (iii) inducing employees or managers of Augusta Lawn Care, its affiliates, or its franchisees to leave their positions, or persuading customers to transfer their business away from Augusta Lawn Care to the franchisee or another non-franchisee.
These restrictions apply both during the franchisee's relationship with Augusta Lawn Care and for a 'Restricted Period' afterward, which is generally two years after ceasing to be a manager, but could be reduced to one year if a court deems the two-year period unenforceable. Engaging in prohibited activities during the restricted period can extend the length of the restricted period by the amount of time the franchisee was engaging in the prohibited activity. Immediate family members are also subject to these restrictions, with the franchisee presumed to have violated the agreement if a family member engages in prohibited activities or uses disclosed know-how, although this presumption can be rebutted with evidence.