Is diverting a prospective customer to a competing business a 'Prohibited Activity' for Augusta Lawn Care?
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, diverting a prospective customer to a competing business is considered a 'Prohibited Activity'. The agreement specifies that 'Prohibited Activities' include diverting or attempting to divert any business from Augusta Lawn Care, its affiliates, or franchisees.
This means that as an Augusta Lawn Care franchisee, you are explicitly prohibited from directing potential customers towards businesses that compete with Augusta Lawn Care. This restriction is in place to protect the brand's customer base and ensure that franchisees are focused on growing the Augusta Lawn Care business rather than supporting competitors.
Violation of this clause could lead to consequences outlined in the franchise agreement, potentially including termination of the agreement. This provision underscores Augusta Lawn Care's commitment to maintaining a cohesive and non-competitive network of franchisees, all working to build the brand's success.