What activities are Owners prohibited from participating in during the term of the Deer Solution Franchise Agreement?
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 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 39–40)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, during the term of the Franchise Agreement, franchisees and their owners are restricted from engaging in specific activities deemed as "Prohibited Activities." These restrictions are designed to prevent unfair competition and protect Deer Solution's interests.
The prohibited activities include owning or having a 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. Franchisees are also barred from operating, managing, funding, or performing services for a Competitive Business, whether as an employee, officer, director, manager, consultant, representative, agent, or creditor.
Additionally, franchisees cannot divert or attempt to divert any business or customers from Deer Solution or its affiliates or franchisees. They are also prohibited from inducing any customer or client of Deer Solution, its affiliates, or franchisees to any other person or business that is not a Deer Solution Business. Engaging in any actions that violate Articles 6.B. and/or 6.C. of the Franchise Agreement is also forbidden. These restrictions also apply to the franchisee's Owners and Spouses, who must sign a Franchise Owner and Spouse Agreement and Guaranty.
These covenants are in place to ensure fair competition and protect Deer Solution's market position. Violation of these restrictions could result in legal action and potential termination of the franchise agreement. Prospective franchisees should carefully review these restrictions and understand their implications before investing in a Deer Solution franchise.