In the Deer Solution Franchise Agreement Schedule 2, what options are available for defining the franchisee's operating territory?

According to the 2025 Deer Solution Franchise Disclosure Document, Schedule 2 of the Franchise Agreement outlines the options for defining a franchisee's operating territory. A prospective franchisee can select either a single territory or a single territory plus additional territories. If the franchisee chooses the latter, they must specify the number of additional territories to be included, which then determines the total number of territories.

This selection is important because it directly impacts the initial franchise fee. The document states that the number of additional territories is used for calculating the initial franchise fee and other obligations under the agreement. Therefore, a franchisee needs to carefully consider the size and scope of their desired operating territory during the initial negotiation phase.

The agreement emphasizes that the determination of the operating territory is based on negotiations initiated by the franchisee and is intended to benefit the franchisee. This suggests that Deer Solution is open to discussing and tailoring the territory to the franchisee's specific needs and market conditions. However, if Schedule 1, which is supposed to designate the operating territory, is not completed or signed by Deer Solution, the franchisor reserves the right to determine the operating territory based on their reasonable business judgment.

It is crucial for potential Deer Solution franchisees to thoroughly understand the implications of their territory selection, as it affects not only the initial investment but also the long-term operational rights and obligations. They should also ensure that Schedule 1 is properly completed and signed to avoid any ambiguity or unilateral determination of the territory by Deer Solution.