What is the consequence if an Augusta Lawn Care franchisee has an interest in a business confusingly similar to Augusta Lawn Care?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
for the operation of an Augusta Lawn Care Business.
"Marks" means the logotypes, service marks, and trademarks now or hereafter involved in the operation of an Augusta Lawn Care Business, including "Augusta Lawn Care", and any other trademarks, service marks or trade names that we designate for use by an Augusta Lawn Care Business. The term "Marks" also includes any distinctive trade dress used to identify an Augusta Lawn Care Business, whether now in existence or hereafter created.
"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.
"Restricted Period" means the two (2) year period after you cease to be a manager of Franchisee's Augusta Lawn Care Business; provided, however, that if a court of competent jurisdiction determines that this period of time is too long to be enforceable, then the "Restricted Period" means the one (1) year period after you cease to be a manager or officer of Franchisee's Augusta Lawn Care Business.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to the 2025 Augusta Lawn Care Franchise Disclosure Document, if a franchisee has an interest in a business that competes with Augusta Lawn Care, it is considered a "Prohibited Activity." Specifically, owning, operating, or having any interest in a "Competitive Business" within a 25-mile radius of another Augusta Lawn Care business is prohibited. The only exception is owning an interest of five percent (5%) or less in a publicly traded company that is a Competitive Business.
A "Competitive Business" includes any business that provides services for the establishment, care, and conditioning of lawns or other vegetation, related services, other Augusta Lawn Care franchises, or any business offering similar approved products and services. It also includes any business that franchises or licenses others to operate such businesses.
The FDD excerpt does not explicitly state the consequences of violating this clause. However, it is common in franchising that engaging in prohibited activities or breaching the franchise agreement can lead to penalties, including termination of the franchise agreement. A prospective franchisee should seek clarification from Augusta Lawn Care regarding the specific repercussions of violating the non-compete terms.