Can Deer Solution face competition from outlets that Deer Solution owns within their Operating Territory?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. However, during the term of the Franchise Agreement, provided that you are not in default of your obligations to us or our affiliates and except as to our Reserved Rights set forth below, we will not open and operate and we will not grant another franchisee the right to open and operate a Deer Solution Business within your Operating Territory.
Source: Item 12 — TERRITORY (FDD pages 35–37)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, franchisees may face competition from outlets that Deer Solution owns. Specifically, Item 12 states that franchisees do not receive an exclusive territory and may face competition from other franchisees, outlets that Deer Solution owns, or other channels of distribution or competitive brands that Deer Solution controls.
This lack of an exclusive territory means that Deer Solution retains the right to operate its own Deer Solution businesses within a franchisee's operating territory. This could potentially impact a franchisee's revenue and market share. While Deer Solution states that it will not open and operate, nor grant another franchisee the right to open and operate a Deer Solution Business within your Operating Territory, this protection is conditional. It applies only if the franchisee is not in default of their obligations and is subject to Deer Solution's Reserved Rights.
Deer Solution also reserves the right to engage in activities that could compete with the franchisee, such as using the Licensed Marks and System to distribute approved services and products through alternative channels like the internet, catalog sales, telemarketing, or other direct marketing sales within or outside the Operating Territory. They can also offer services through corporate accounts within or outside the franchisee's territory. These activities are considered Deer Solution's "Reserved Rights," and they can engage in them without compensating the franchisee.
Prospective franchisees should carefully consider the implications of not having an exclusive territory and the potential for competition from Deer Solution's own operations and alternative distribution channels. It would be prudent to discuss Deer Solution's plans for corporate-owned locations and alternative channels in the franchisee's target market to better understand the potential competitive landscape.