factual

Can Augusta Lawn Care reduce the geographic scope of the restricted territory for a franchisee?

Augusta_Lawn_Care Franchise · 2025 FDD

Answer from 2025 FDD Document

"Restricted Territory" means the geographic area within: (i) a 25 mile radius from Franchisee's Augusta Lawn Care Business (and including the address of primary operation); and (ii) a 25 mile radius from all other Augusta Lawn Care Business that are operating or under construction as of the beginning of the Restricted Period; provided, however, that if a court of competent jurisdiction determines that the foregoing Restricted Territory is too broad to be enforceable, then the "Restricted Territory" means the geographic area within a 15 mile radius from Franchisee's Augusta Lawn Care Business (and including the premises of the Business).

Source: Item 23 — RECEIPTS (FDD pages 44–184)

What This Means (2025 FDD)

According to the 2025 Augusta Lawn Care Franchise Disclosure Document, the definition of "Restricted Territory" includes a clause that addresses the possibility of a court finding the initial territory too broad. The standard restricted territory is defined as the geographic area within a 25-mile radius of the franchisee's Augusta Lawn Care business and a 25-mile radius from all other Augusta Lawn Care businesses operating or under construction at the beginning of the restricted period.

However, if a court determines that this 25-mile radius is too broad to be enforceable, the "Restricted Territory" is reduced to a 15-mile radius from the franchisee's Augusta Lawn Care business. This provision is designed to ensure the enforceability of the non-compete agreement, adjusting the restricted territory's size based on judicial review.

This means that while Augusta Lawn Care initially defines the restricted territory using a 25-mile radius, this can be reduced to a 15-mile radius if a court deems the larger area unenforceable. This adjustment mechanism provides a safeguard, ensuring that the non-compete agreement remains valid and enforceable, while still protecting Augusta Lawn Care's interests. Prospective franchisees should be aware of this clause, as it directly impacts the geographic scope of their non-compete obligations should they leave the Augusta Lawn Care system.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.