Does the definition of 'Prohibited Activities' for Augusta Lawn Care include diverting business from affiliates?
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 Franchise Disclosure Document, 'Prohibited Activities' does include diverting business from affiliates. Specifically, the definition includes 'diverting or attempting to divert any business from us (or one of our affiliates or franchisees).' This means that as a franchisee, you are prohibited from taking or trying to take business away from Augusta Lawn Care itself, its affiliates, or other franchisees within the system.
This restriction is in place to protect the overall network and prevent unfair competition among franchisees and with the franchisor. It ensures that franchisees focus on growing their own business within the defined territory and according to the franchise agreement, rather than trying to undermine the success of other members of the Augusta Lawn Care system.
For a prospective franchisee, this means understanding the boundaries of your business operations and respecting the established network. It is important to note that the definition also includes 'attempting to divert' business, meaning that even unsuccessful efforts to take business from affiliates are prohibited and could result in penalties or termination of the franchise agreement. Therefore, it is crucial to adhere to these restrictions to maintain a positive relationship with Augusta Lawn Care and its franchisees.