What constitutes unfair competition by a Deer Solution franchisee during the franchise relationship?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
n was necessary for the operations of the Franchised Business and where such director, officer, employee and/or agent previously executed and timely delivered to Franchisor the Confidentiality Agreement in the form attached as Exhibit 2.
6.D. RESTRICTIVE COVENANTS: UNFAIR COMPETITION AND IN-TERM NON-COMPETITION OBLIGATIONS
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.
**6.E.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, a franchisee engages in unfair competition during the term of the Franchise Agreement by participating in what the agreement terms "Prohibited Activities." These activities include owning or having a legal or equitable interest in a Competitive Business, with a limited exception of owning 3% or less of a publicly traded company that is a Competitive Business. A Competitive Business is defined as any business that is the same as or similar to a Deer Solution Business, including those offering deer repellent services, deer damage control and repair, lawn care, and landscaping.
Prohibited Activities also encompass operating, managing, funding, or performing services for a Competitive Business, whether as an employee, officer, director, manager, consultant, representative, agent, or creditor. Furthermore, franchisees are prohibited from diverting or attempting to divert any business or customers from Deer Solution or its affiliates or franchisees. Inducing any customer or client of Deer Solution, its affiliates, or franchisees to another business that is not a Deer Solution Business is also considered a Prohibited Activity.
The agreement specifies that engaging in these Prohibited Activities would be unfair, constitute unfair competition, and cause harm to Deer Solution, the System, and other Deer Solution Business franchisees. These restrictions also apply to the franchisee's Owners and Spouses, who are required to sign a Franchise Owner and Spouse Agreement and Guaranty. This comprehensive definition aims to protect Deer Solution's market position and prevent franchisees from leveraging the franchisor's resources and reputation to benefit competing businesses during the term of their agreement.