What activities are considered prohibited for a Deer Solution franchisee during the franchise relationship?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that during the Term of this Agreement, Franchisee shall not engage in the following activities (the "Prohibited Activities"): (a) owning and/or having any legal or equitable interest whether, as an individual proprietor, owner, partner, member or shareholder of a Corporate Entity, or, in any similar capacity, in a Competitive Business other than, owning an interest of 3% or less in a publicly traded company that is a Competitive Business; (b) operating, managing, funding and/or performing services whether, as an employee, officer, director, manager, consultant, representative, agent, and/or creditor or, in any similar capacity, for or benefitting a Competitive Business; (c) diverting or attempting to divert any business or customers from Franchisor or, one of Franchisor's affiliates or franchisees; (d) inducing any customer or client of Franchisor, Franchisor's affiliates, franchisees of the System, or, of Franchisee, to any other person or business that is not a Deer Solution Business; and/or (e) engaging in any actions, inactions, and/or activities in violation of Articles 6.B. and/or 6.C. of this Agreement (all, individually and, collectively, referred to as the "Prohibited Activities"). Franchisee agrees that if Franchisee were to engage in the Prohibited Activities that such actions would be unfair, would constitute unfair competition and, would cause harm to Franchisor, the System, and other Deer Solution Business franchisees. Franchisee agrees that the foregoing covenants and obligations shall also apply to Franchisee's Owners and Spouses and that Franchisee's Owners and Spouses shall each execute and deliver to Franchisor the Franchise Owner and Spouse Agreement and Guaranty in the form attached to this Agreement as Exhibit 1.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, there are several activities considered 'Prohibited Activities' that a franchisee cannot engage in during the term of the Franchise Agreement. These restrictions are designed to prevent unfair competition and protect the interests of the franchisor, the Deer Solution system, and other franchisees. These restrictions also apply to the franchisee's owners and spouses, who must sign a Franchise Owner and Spouse Agreement and Guaranty.
Specifically, a Deer Solution franchisee is prohibited from owning or having any legal or equitable interest in a Competitive Business, with a minor exception of owning 3% or less in a publicly traded company that is a Competitive Business. They are also restricted from operating, managing, funding, or performing services for a Competitive Business, whether as an employee, officer, director, manager, consultant, or in any similar capacity.
Furthermore, franchisees are not allowed to divert or attempt to divert any business or customers from Deer Solution or its affiliates or other franchisees. They cannot induce any customer or client of Deer Solution, its affiliates, or franchisees to any other person or business that is not a Deer Solution Business. Finally, franchisees are prohibited from engaging in any actions or inactions that violate specific articles related to confidentiality and non-solicitation within the Franchise Agreement.
Engaging in any of these Prohibited Activities would be considered unfair competition and could cause harm to Deer Solution, the System, and other Deer Solution Business franchisees. These covenants are in place to ensure that franchisees remain committed to the Deer Solution system and do not use their knowledge or resources gained through the franchise to benefit competing businesses.