Does the definition of 'Prohibited Activities' for Augusta Lawn Care include diverting business from franchisees?
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 franchisees. Specifically, the definition encompasses 'diverting or attempting to divert any business from us (or one of our affiliates or franchisees).' This means a franchisee is prohibited from taking or trying to take business away from the franchisor, its affiliates, or other franchisees within the Augusta Lawn Care system.
This restriction is in place to protect the integrity of the Augusta Lawn Care network and ensure fair competition among franchisees. By preventing franchisees from diverting business, the franchisor aims to maintain a stable and collaborative environment. This helps to foster trust and cooperation within the franchise system, as franchisees can be confident that their fellow operators are not actively trying to undermine their business.
For a prospective Augusta Lawn Care franchisee, this clause is important to understand. It means that you cannot actively solicit or take business away from existing franchisees or the franchisor. Doing so would be a violation of the franchise agreement and could lead to penalties or termination of the agreement. While franchisees may naturally compete for customers, directly diverting existing business relationships is prohibited. This is a fairly standard clause in franchise agreements across various industries, designed to protect the overall health and stability of the franchise system.