Does the Deer Solution franchise agreement define 'Additional Territory' as constituting the Franchisee's Operating Territory?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) The Operating Territory shall be comprised of a Territory and if, at the time of signing this Agreement, Franchisor and Franchisee agree to supplement the size of Franchisee's Operating Territory by adding an Additional Territory or Additional Territories, the Additional Territory or Additional Territories shall be included within the Operating Territory identified in Schedule 1 and shall be quantified in Schedule 2 for purposes of calculating the Initial Franchise Fee and other obligations under this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the franchise agreement addresses how additional territories relate to the franchisee's operating territory. Specifically, if the franchisee and Deer Solution agree to add an Additional Territory or Territories to the franchisee's Operating Territory at the time of signing the agreement, these Additional Territories will be included within the Operating Territory.
This inclusion is formalized in Schedule 1 of the Franchise Agreement, which designates the Operating Territory. Furthermore, Schedule 2 quantifies these Additional Territories for the purpose of calculating the Initial Franchise Fee and other obligations under the agreement. This means that the franchisee's rights and obligations, including fees, are directly tied to the size and scope of the Operating Territory, which can be expanded by adding Additional Territories.
For a prospective Deer Solution franchisee, this means there is an opportunity to negotiate the size of their Operating Territory at the outset, potentially increasing their market reach. However, it also means that the Initial Franchise Fee and other financial obligations will be affected by the inclusion of Additional Territories. It is important for franchisees to understand how these Additional Territories are defined, quantified, and how they impact their financial commitments and operational rights under the Franchise Agreement.