What actions by a Deer Solution franchisee constitute a breach of the confidentiality restrictions?

According to the 2025 Deer Solution FDD, a franchisee breaches confidentiality restrictions if they disclose, divulge, provide access to, communicate, and/or permit the communication of Confidential Information to any third party not otherwise authorized by Deer Solution. This restriction applies both during the term of the Franchise Agreement and after its expiration or termination.

Deer Solution franchisees must not use Confidential Information in any business or capacity other than their Deer Solution Business. They are obligated to maintain the confidentiality of the information at all times, avoid making unauthorized copies of documents containing Confidential Information, and take reasonable steps to prevent unauthorized use or disclosure, as directed by Deer Solution. Upon expiration, termination, or transfer of the Franchise Agreement, the franchisee must immediately cease using the Confidential Information.

These confidentiality obligations extend not only to the franchisee but also to their owners, spouses, directors, officers, employees, and agents, provided that the disclosure of Confidential Information was necessary for the operation of the franchised business and that these individuals have previously executed and delivered a confidentiality agreement to Deer Solution. This ensures that all parties involved in the Deer Solution business are bound by the confidentiality restrictions, safeguarding Deer Solution's proprietary information and trade secrets.

Failure to comply with these confidentiality obligations can result in a default of the Franchise Agreement, potentially leading to termination. Prospective Deer Solution franchisees should carefully review the definition of "Confidential Information" in the Franchise Agreement and understand the scope of these restrictions to avoid any unintentional breaches.