Is attempting to divert any business from Augusta Lawn Care a 'Prohibited Activity'?
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 Augusta Lawn Care's 2025 Franchise Disclosure Document, attempting to divert business from Augusta Lawn Care is considered a 'Prohibited Activity.' The FDD defines 'Prohibited Activities' to include diverting or attempting to divert any business from Augusta Lawn Care, its affiliates, or its franchisees. This means a franchisee is not allowed to take or try to take customers away from the franchisor or other franchisees within the Augusta Lawn Care system.
This restriction is significant for prospective franchisees as it directly impacts how they can operate their business and seek customers. It prevents franchisees from actively soliciting or attracting existing customers of other Augusta Lawn Care businesses, ensuring a level of protection and stability within the franchise network. This measure aims to maintain customer loyalty within the system and prevent internal competition that could harm individual franchisees or the overall brand.
Furthermore, engaging in prohibited activities during the restricted period can extend the length of the restricted period. The agreement also stipulates that if an immediate family member engages in prohibited activities, it is presumed that the franchisee has violated the agreement unless they can prove they did not disclose confidential information to the family member. This highlights the importance of understanding and adhering to these restrictions to avoid potential legal issues and maintain a positive relationship with Augusta Lawn Care.