Can Augusta Lawn Care modify the scope of prohibited activities for a franchisee?
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.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
Based on the 2025 Augusta Lawn Care Franchise Disclosure Document, the definition of "Prohibited Activities" is explicitly defined within the agreement. These activities include owning or operating a competitive business within a 25-mile radius of another Augusta Lawn Care business, diverting business away from Augusta Lawn Care, and soliciting Augusta Lawn Care's employees or customers.
The franchise agreement states that the franchisee acknowledges the reasonableness of the agreement's terms, including the scope of geographic area and time restrictions. The franchisee also waives any right to challenge the terms as overly broad or unenforceable. This suggests that the franchisee agrees to the defined scope of prohibited activities and limitations.
While the FDD defines "Prohibited Activities," it does not explicitly state whether Augusta Lawn Care can unilaterally modify the scope of these activities during the franchise term. The agreement does state that Augusta Lawn Care can modify the Trade Name, Marks, and System. However, without explicit language allowing modification of the definition of "Prohibited Activities," it is unclear whether Augusta Lawn Care has the right to change the scope of what constitutes a prohibited activity. A prospective franchisee should seek clarification from Augusta Lawn Care on this point to fully understand their obligations and restrictions during and after the franchise term.