Following termination of a Deer Solution franchise, is the franchisee required to abide by post-termination non-competition covenants?

According to Deer Solution's 2025 Franchise Disclosure Document, a franchisee is required to abide by post-termination non-competition covenants. Specifically, upon termination, a franchisee must cease owning and operating the franchised business, stop representing themselves as a Deer Solution franchisee, and discontinue using the System, Licensed Marks, confidential information, operations manual, Business Management System, Business Management System Data, and System Supplies. The franchisee must also return the operations manual and all confidential information, document the destruction of electronic files, and de-identify the location associated with the franchise. Additionally, the franchisee must transfer data, telephone listings, digital media, accounts, web listings, and websites to Deer Solution if requested. Most importantly, the franchisee must adhere to the post-termination non-competition covenants and restrictions.

The post-termination non-competition covenants outlined in the 2025 FDD for Deer Solution state that for 24 months after termination or expiration, the franchisee cannot have any involvement, ownership, or interest in any competing business within their Operating Territory, a 25-mile radius of their Operating Territory, or a 25-mile radius of any other Deer Solution business. Furthermore, the franchisee must continue to comply with confidentiality, non-disclosure, and non-solicitation covenants.

These non-competition terms are fairly standard in the franchise industry to protect the brand and system that Deer Solution has developed. Prospective franchisees should carefully consider the geographic scope and duration of these restrictions, as they could significantly limit their business opportunities after leaving the Deer Solution system. It is important to fully understand these obligations before entering into a franchise agreement.