What does 'Additional Territory' refer to in the Deer Solution franchise agreement?

According to Deer Solution's 2025 Franchise Disclosure Document, an 'Additional Territory' refers to an expansion of the franchisee's operating area beyond the initial territory. Specifically, if at the time of signing the Franchise Agreement, Deer Solution and the franchisee agree to increase the size of the franchisee's operating territory, this is done by adding one or more 'Additional Territories.'

The inclusion of any 'Additional Territories' affects the terms of the agreement, particularly in how the initial franchise fee and other obligations are calculated. These 'Additional Territories' become part of the overall 'Operating Territory' and are quantified in Schedule 2 of the Franchise Agreement for financial and contractual purposes. This means the franchisee's financial commitments to Deer Solution, such as the initial franchise fee, will be adjusted to reflect the increased market access.

It is important to note that the franchisee's administrative office must be located within the 'Operating Territory,' which includes any 'Additional Territories.' The franchisee is restricted to operating the Deer Solution business and offering approved services and products only within this designated 'Operating Territory.' This territorial restriction is a standard practice in franchising to protect market exclusivity and prevent cannibalization between franchisees.