What are the consequences if a Deer Solution franchisee engages in prohibited activities during the restricted period?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
If you engage in any Prohibited Activities during the Restricted Period, then you agree that your Restricted Period will be extended by the period of time during which you were engaging in the prohibited activity (any such extension of time will not be construed as a waiver of your breach or otherwise impair any of our rights or remedies relating to your breach).
You acknowledge and agree that this restriction is fair and reasonable and that if you did engage in a Prohibited Activity that such actions would constitute acts of unfair competition and will irreparably harm us and the System.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, if a franchisee engages in any prohibited activities during the restricted period, the restricted period will be extended by the amount of time the franchisee was engaging in the prohibited activity. This extension does not waive the breach or impair any of Deer Solution's rights or remedies relating to the breach.
The FDD states that engaging in prohibited activities constitutes acts of unfair competition that will irreparably harm Deer Solution and the System. Prohibited activities include owning or having any legal or equitable interest in a competitive business (with a minor exception for owning 3% or less in a publicly traded company), operating, managing, funding, or performing services for a competitive business, diverting or attempting to divert business or customers from Deer Solution or its affiliates/franchisees, and inducing any customer or client of Deer Solution or its franchisees to another business that is not a Deer Solution Business.
This clause is designed to protect Deer Solution's business interests and prevent franchisees from using the knowledge and resources gained from the franchise to compete against it, either during the franchise term or for a certain period after the agreement ends. The franchisee acknowledges that the restriction is fair and reasonable. The extension of the restricted period serves as an additional penalty for violating the non-compete agreement, on top of any other legal remedies Deer Solution may pursue.