Are there any agreements related to competition included in the Augusta Lawn Care Franchise Agreement?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
and deliver such additional agreements and instruments as any Party may reasonably require to consummate, evidence, or confirm the Release contained herein in the matter contemplated hereby.
This General Release does not apply with respect to claims arising under the Washington Franchise Investment Protection Act, RWC 19.100, and the rules adopted thereunder.
IN WITNESS WHEREOF Releasor has executed this Release as of the date first written above.
Dated:, 20 FRANCHISEE'S OWNERS:
EXHIBIT E TO AUGUSTA LAWN CARE FRANCHISE AGREEMENT
NONDISCLOSURE, NONSOLICITATION AND NONCOMPETITION AGREEMENT
This Agreement ("Agreement") is entered into by the undersigned ("you") in favor of Augusta Franchise LLC, a Washington limited liability company, and its renewals and assigns ("us"), upon the terms and conditions set forth in this Agreement.
1. Definitions.
"Competitive Business" shall mean any and all businesses that are competitive with Augusta Lawn Care Businesses, including, without limitation, any (a) business that provides services for the establishment, care, and conditioning of lawns or other vegetation, including, but not limited to, trees, shrubbery and other plant life, or any related or ancillary services, (c) other Augusta Lawn Care franchises, (d) any business offering Approved Products and Services of a similar nature to those of the Business, or (e) in any business or entity which franchises, licenses or otherwise grants to others the right to operate such aforementioned businesses described in subparts (a)-(e) of this Section. Furthermore, the Restricted Parties shall not divert, or attempt to divert, any prospective customer to a Competing Business in any manner.
"Copyrights" means all works and materials for which we or our affiliate have secured common law or registered copyright protection and that we allow franchisees to use, sell or display in connection with the marketing and/or operation of an Augusta Lawn Care Business, whether now in existence or created in the future.
"Franchisee" means the Augusta Lawn Care franchisee for whom you are an officer, director, employee or independent contractor.
"Intellectual Property" means, collectively or individually, our Marks, Copyrights, Knowhow and System.
Source: Item 22 — CONTRACTS (FDD pages 43–44)
What This Means (2025 FDD)
According to the 2025 Augusta Lawn Care FDD, franchisees are subject to certain agreements related to competition. Exhibit E of the Augusta Lawn Care Franchise Agreement is a "Nondisclosure, Nonsolicitation and Noncompetition Agreement". This agreement defines what constitutes a "Competitive Business" as any business that competes with Augusta Lawn Care, including those providing similar landscaping services, other Augusta Lawn Care franchises, or businesses offering similar approved products and services. The agreement also states that franchisees cannot divert prospective customers to a competing business.
Item 4.2 of the Augusta Lawn Care Franchise Agreement discusses the approved territory, stating that while Augusta Lawn Care will not establish or license another Augusta Lawn Care Business at a physical location within the franchisee's approved territory, franchisees do not have exclusivity. Other Augusta Lawn Care franchisees may service clients in the territory as long as they do not advertise or market there. If a franchisee does not receive an exclusive territory and another franchisee purchases an exclusive territory in the area where they operate, they must relinquish the rights to acquire new customers in that territory.
These non-compete and territorial stipulations are typical in franchising. Prospective Augusta Lawn Care franchisees should carefully review Exhibit E and Item 4.2 of the Franchise Agreement to understand the restrictions and limitations regarding competition, customer acquisition, and the scope of their protected territory. Understanding these limitations is crucial for assessing the potential market and developing a sustainable business strategy.