Besides Article 1 of the Franchise Agreement, what other parts of the Deer Solution Franchise Agreement define the Franchisee's Operating Territory?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
n Business within a specified territory. In reliance on the representations made by Franchisee and/or Franchisee's Owners in any submitted application and during the application process, and subject to the terms and conditions of this Agreement, Franchisee's request has been approved by Franchisor, subject to the following terms and conditions:
- (1) During the Term of this Agreement and subject to the rights of Franchisor including, but not limited to, the Reserved Rights, Franchisor grants to Franchisee and Franchisee accepts, the nonexclusive license, right and obligation to develop and operate a Deer Solution Business within the operating territory designated and set forth in Schedule 1 of this Agreement (the "Operating Territory"). If Schedule 1 does not specifically identify and designate an Operating Territory, and/or if Schedule 1 is not signed by Franchisor, the Operating Territory shall be determined by Franchisor in Franchisor's Reasonable Business Judgment;
- (2) The Operating Territory shall be comprised of a Territory and if, at the time of signing this Agreement, Franchisor and Franchisee agree to supplement the size of Franchisee's Operating Territory by adding an Additional Territory or Additional Territories, the Additional Territory or Additional Territories shall be included within the Operating Territory identified in Schedule 1 and shall be quantified in Schedule 2 for purposes of calculating the Initial Franchise Fee and other obligations under this Agreement;
- (3) Franchisee's Administrative Office must be located within the Operating Territory and be approved by Franchisor;
- (4) Franchisee may only operate the Franchised Business within Franchisee's Operating Territory and, without limitation to the foregoing, Franchisee may only offer and sell the Approved Services and Products within Franchisee's Operating Territory from Franchisor designated and authorized Service Vehicles, the System standards designated by Franchisor, and in accordance with the requirements designated by Franchisor in the Operations Manual;
- (5) Except as otherwise provided in this Agreement including, but not limited to, the Reserved Rights and Closed Markets, provided that, at all times, Franchisee is and remains in compliance with the terms of this Agreement, during the Term of this Agreement, Franchisor will not and Franchisor's affiliates will not operate, or grant a franchisee the right to operate a Deer Solution Business using the Licensed Marks and System within Franchisee's Operating Territory, provided that an Operating Territory has been designated and approved by Franchisor in accordance with the terms of this Agreement; and
(6) The foregoing rights granted in this Article 2.A. are subject to and contingent upon each and every, term and condition of this Agreement, the rights of any prior user, and are non-exclusive and subordinate to the Reserved Rights.
2.B. TERM
Unless previously terminated pursuant to the terms of this Agreement, the term of this Agreement will be for a period of seven consecutive years, commencing from the Effective Date (the "Term").
2.C. GUARANTEES, CONFIDENTIALITY AND RESTRICTIVE COVENANTS
If Franchisee is, at any time, a Corporate Entity, Franchisee agrees that each Owner and their respective Spouse shall execute, sign, and deliver to Franchisor the Franchise Owner and Spouse Agreement and Guaranty attached to this Agreement as Exhibit 1 and, in doing so, among other things, will individually, jointly, and severally, guarantee Franchisee's obligations under this Agreement and personally bind themselves to confidentiality and non-competition covenants and restrictions.
**2.D.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the definition of the franchisee's operating territory is further defined in Schedule 1 and Article 2.A of the Franchise Agreement. Schedule 1 specifically identifies the territory, and if it's incomplete or unsigned by Deer Solution, the operating territory will be determined by Deer Solution using their reasonable business judgment. Article 2.A. grants the franchisee the nonexclusive right to operate a Deer Solution business within the designated operating territory, subject to Deer Solution's reserved rights.
The operating territory consists of a territory, and can be supplemented with additional territories as agreed upon by both Deer Solution and the franchisee. These additional territories are included in Schedule 1 and quantified in Schedule 2 for calculating the initial franchise fee and other obligations. The franchisee's administrative office must be located within the operating territory and approved by Deer Solution.
The franchisee is restricted to operating the franchised business, offering, and selling approved services and products only within their designated operating territory. This must be done from Deer Solution-designated and authorized service vehicles, adhering to system standards outlined in the operations manual. Deer Solution and its affiliates will not operate or grant another franchise within the franchisee's operating territory, provided the franchisee complies with the agreement terms and the operating territory has been properly designated and approved.
These rights are contingent upon the franchisee adhering to all terms and conditions of the agreement, respecting the rights of any prior users, and are non-exclusive and subordinate to Deer Solution's reserved rights. The determination of the operating territory is based on negotiations initiated by and benefiting the franchisee, with geographic or political boundaries considered fixed as of the agreement's effective date, regardless of any subsequent changes to those boundaries.