Who, besides the franchisee, is required to comply with the restrictive covenants outlined in the Deer Solution franchise agreement?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
n 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, the restrictive covenants and obligations outlined in the franchise agreement also apply to the franchisee's Owners and Spouses. To ensure compliance, Deer Solution requires that the franchisee's Owners and Spouses each execute and deliver to the franchisor a Franchise Owner and Spouse Agreement and Guaranty, which is attached to the agreement as Exhibit 1.
Additionally, the restrictive covenants regarding confidential information extend to the franchisee's directors, officers, employees, and agents. This is applicable when the disclosure of confidential information is necessary for the operation of the franchised business. In these cases, Deer Solution requires that these individuals previously execute and deliver a Confidentiality Agreement, which is included as Exhibit 2 to the franchise agreement.
These measures are in place to protect Deer Solution's interests and maintain the integrity of the franchise system by preventing unfair competition and unauthorized use of confidential information. By requiring these additional parties to adhere to the restrictive covenants, Deer Solution aims to minimize potential risks and ensure consistent compliance across the franchise network.