Does the Deer Solution franchise agreement define who owns the Business Management System Data?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor reserves the right to modify and designate alternative Business Management Systems as Franchisor determines in Franchisor's Reasonable Business Judgment.
At all times, Franchisor shall possess direct live access and storage based access to the Business Management System for the Franchised Business and to Franchisee's Business Management System Data.
- "Business Management System Data" refers to and means the forms, data, tools, customer information, inventory and sales information that: (a) is pre-populated or entered into the Business Management System utilized by Franchisee; (b) is entered (whether by Franchisor or Franchisee) into the Business Management System utilized by Franchisee; and/or (c) is recorded, stored and/or maintained by the Business Management System in connection with the management and operations of the Franchised Business.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the franchisor maintains direct access and storage-based access to the franchisee's Business Management System Data. The agreement defines "Business Management System Data" as the information entered into the system, including forms, data, tools, customer information, and inventory and sales information.
This means that while the franchisee uses the Business Management System for their daily operations, Deer Solution retains control and access to all the data within it. This access allows Deer Solution to monitor the franchisee's performance, gather data for system-wide improvements, and ensure compliance with brand standards.
Upon termination or expiration of the franchise agreement, the franchisee must cease using the Business Management System Data. This further emphasizes Deer Solution's ownership and control over the data, as the franchisee loses all rights to use it after the agreement ends. Prospective franchisees should consider the implications of this data ownership structure, particularly regarding customer relationships and marketing strategies, as they cannot take the data with them if they leave the Deer Solution system.