What are the consequences if a Deer Solution franchisee's spouse is an Owner of Franchisee and engages in Prohibited Activities?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that should Franchisee circumvent the restrictive covenants and obligations of this Article 6 by disclosing Confidential Information to an Immediate Family Member that Franchisor and, the System, will be irreparably harmed. Franchisee agrees that if Franchisee or, one of Franchisee's Owners, discloses Confidential Information to an immediate family member and, the immediate family member of Franchisee or an Owner, uses the Confidential Information to engage in activities that, for Franchisee, qualify as Prohibited Activities, that Franchisor and the System will be irreparably harmed. Franchisee agrees that as between Franchisee and Franchisor, that Franchisee and Franchisee's Owners are in a better position to know if Franchisee permitted and/or provided an immediate family member with access to the Confidential Information and that, therefore, Franchisee agrees that Franchisee will be presumed to have violated the
terms of this Agreement and, in particular, the restrictive covenants and obligations set forth in this Article 6 if any member of Franchisee's immediate family or the immediate family of an Owner: (a) engages in any Prohibited Activities during any period of time during which Franchisee is prohibited from engaging in the Prohibited Activities; and/or (b) uses or discloses the Confidential Information and/or Know-How. Franchisee may rebut the foregoing presumption by providing evidence conclusively demonstrating that neither Fra
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, franchisees agree that certain restrictive covenants and obligations also apply to their owners and spouses. These individuals must also execute and deliver to Deer Solution the Franchise Owner and Spouse Agreement and Guaranty.
If a franchisee circumvents these restrictive covenants by disclosing confidential information to an immediate family member, and that family member uses the information to engage in activities that qualify as prohibited activities for the franchisee, Deer Solution states that the franchisor and the System will be irreparably harmed.
In such a case, Deer Solution states that the franchisee and its owners are in a better position to know if they permitted an immediate family member access to confidential information. Therefore, if a member of the franchisee's or an owner's immediate family engages in prohibited activities or uses confidential information, the franchisee will be presumed to have violated the terms of the agreement, particularly the restrictive covenants. The franchisee can rebut this presumption by providing evidence that conclusively demonstrates they did not permit the family member access to confidential information.