What are the conditions under which a Deer Solution franchisee's spouse's actions are considered?
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, a franchisee's spouse's actions are considered under specific conditions, primarily related to restrictive covenants and agreements. The franchisee agrees that certain restrictive covenants and obligations also apply to their spouses. Spouses are required to execute and deliver to Deer Solution the Franchise Owner and Spouse Agreement and Guaranty. This agreement likely outlines specific responsibilities and restrictions placed upon the spouse.
Specifically, during the term of the Franchise Agreement, the franchisee agrees to not engage in Prohibited Activities such as owning or having interest in a Competitive Business (with a minor exception of owning 3% or less in a publicly traded company), operating, managing, funding, or performing services for a Competitive Business, diverting business or customers from Deer Solution, or inducing customers to other non-Deer Solution businesses. These restrictions also apply to the franchisee's spouse.
This means that the actions of the spouse can directly impact the franchisee's compliance with the Franchise Agreement. If a spouse violates these restrictive covenants, it could potentially lead to a breach of the agreement by the franchisee. This is a significant consideration for prospective franchisees, as their spouse's business activities and interests must align with the obligations outlined in the Franchise Agreement to avoid any conflicts or potential breaches.