Is there a non-competition covenant during the term of the Augusta Lawn Care franchise?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 32–35)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, franchisees are subject to certain non-competition restrictions during the term of their Franchise Agreement. Specifically, Exhibit E outlines a Nondisclosure, Nonsolicitation, and Noncompetition Agreement that the franchisee must adhere to. This agreement defines what constitutes a "Competitive Business" and prohibits franchisees from engaging in such businesses.
The definition of "Competitive Business" is broad, encompassing any business that competes with Augusta Lawn Care, including those providing similar lawn care services, other Augusta Lawn Care franchises, or businesses offering similar approved products and services. The agreement also prevents franchisees from diverting prospective customers to a competing business. This means that during the term of the franchise, an Augusta Lawn Care franchisee is restricted from owning, operating, or being involved with any business that offers similar services or products within the defined competitive scope.
This non-competition agreement is designed to protect Augusta Lawn Care's market position and prevent franchisees from using the franchisor's confidential information and business model to compete against the system. Prospective franchisees should carefully review Exhibit E of the Franchise Agreement to fully understand the scope and limitations of these non-competition covenants and how they might affect any existing or future business ventures.