Does the Deer Solution franchise agreement grant the franchisee any goodwill interests or rights, other than the non-exclusive right to use the Licensed Marks and the System?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Without limitation as to any other Article or provision of this Agreement, upon expiration or termination of this Agreement for any reason, Franchisee shall immediately pay to Franchisor all sums and fees due from Franchisee to Franchisor under the terms of this Agreement including, but not limited to Royalty Fees and Advertising Contributions and all other sums and fees due from Franchisee to Franchisor and/or Franchisor affiliates and/or suppliers for products and services including, but not limited to, System Supplies.
17.B. CEASE OPERATIONS AND PROTECTION OF THE SYSTEM
Upon expiration, termination, or Transfer of this Agreement for any reason, Franchisee shall immediately:
- (1) Permanently cease to be a franchise owner of the Deer Solution Business that was the subject of this Agreement and cease to operate such Deer Solution Business under the System;
- (2) Refrain from directly or indirectly, holding oneself/itself out to any person or entity, or represent themselves/itself as a present or former Deer Solution franchisee;
- (3) Permanently cease to use, in any manner: (a) the System including, without limitation, the Confidential Information, the Licensed Marks, the Business Management System Data, and the Operations Manual; (b) any methods, procedures, or techniques associated with the System in which Franchisor possesses proprietary rights or that constitute Franchisor's trade secrets; (c)
System Supplies, including communicating with or ordering products from Franchisor's designated suppliers and vendors of System Supplies; (d) the Approved Services and Products; and (e) any other advertising, marketing, media, and any other information, documents or things associated with Franchisor, the System, the Licensed Marks, Deer Solution Businesses, the Franchised Business, and Franchisee's former Deer Solution Business, including, without limitation, any confidential, proprietary methods, procedures, descriptions of products, techniques, trade secrets, proprietary marks, distinctive forms, slogans, symbols, signs, stationary, advertising material, articles, logos, devices, items and all other things, tangible or intangible, associated with Franchisor, the System, the Licensed Marks, and Deer Solution Businesses;
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to the 2025 Deer Solution Franchise Disclosure Document, upon the expiration or termination of the franchise agreement, the franchisee must cease operating as a Deer Solution franchise and discontinue using the System. This includes refraining from representing themselves as a current or former Deer Solution franchisee and ceasing all use of the System, Confidential Information, Licensed Marks, Business Management System Data, and the Operations Manual.
Deer Solution franchisees must also stop using any methods, procedures, or techniques associated with the System in which Deer Solution possesses proprietary rights or that constitute their trade secrets. This extends to System Supplies, Approved Services and Products, and any advertising, marketing, media, or other information associated with Deer Solution. The franchisee is prohibited from using any confidential methods, procedures, descriptions of products, techniques, trade secrets, proprietary marks, distinctive forms, slogans, symbols, signs, stationary, advertising material, articles, logos, devices, items, and all other things associated with Deer Solution.
These stipulations indicate that the Deer Solution franchise agreement does not grant franchisees any enduring goodwill interests or rights beyond the term of the agreement. Franchisees do not retain any rights to the brand's reputation, customer relationships, or proprietary knowledge developed during the franchise term, except for the non-exclusive right to use the Licensed Marks and the System during the active term of the agreement. This is a common practice in franchising, as the franchisor typically retains ownership of the brand and system-wide goodwill.