What is the definition of 'Prohibited Activities' within the Augusta Lawn Care agreement?
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, 'Prohibited Activities' are specifically defined within the agreement to protect the brand and its franchisees. These activities include (1) owning, operating, or having any interest in a Competitive Business (with a minor exception), (2) diverting or attempting to divert business away from Augusta Lawn Care, its affiliates, or its franchisees, and (3) inducing employees or customers to leave Augusta Lawn Care's network.
Specifically, the definition includes owning, operating, or having any interest in a Competitive Business within a 25-mile radius of another Augusta Lawn Care business. The exception is owning an interest of five percent (5%) or less in a publicly traded company that is considered a Competitive Business. This clause aims to prevent franchisees from directly competing with the brand or other franchisees in close proximity.
The definition also prohibits franchisees from diverting or attempting to divert any business from Augusta Lawn Care, its affiliates, or its franchisees. This prevents franchisees from using their knowledge and access to clients to benefit a competing business or their own independent venture. Furthermore, franchisees are barred from inducing employees or managers of Augusta Lawn Care or its affiliates/franchisees to leave their positions, or from persuading customers to transfer their business away from the Augusta Lawn Care network. This protects the company's workforce and customer base from being poached.
These restrictions apply both during the term of the franchise agreement and for a certain period after the agreement ends, within a defined geographic area. Engaging in any of these Prohibited Activities can lead to an extension of the non-compete period, highlighting the importance of understanding and adhering to these terms to avoid legal repercussions and maintain a positive relationship with Augusta Lawn Care.