Does the Deer Solution franchise agreement specify the consequences of operating a Competitive Business?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that during the Term of this Agreement, Franchisee shall not engage in the following activities (the "Prohibited Activities"): (a) owning and/or having any legal or equitable interest whether, as an individual proprietor, owner, partner, member or shareholder of a Corporate Entity, or, in any similar capacity, in a Competitive Business other than, owning an interest of 3% or less in a publicly traded company that is a Competitive Business; (b) operating, managing, funding and/or performing services whether, as an employee, officer, director, manager, consultant, representative, agent, and/or creditor or, in any similar capacity, for or benefitting a Competitive Business; (c) diverting or attempting to divert any business or customers from Franchisor or, one of Franchisor's affiliates or franchisees; (d) inducing any customer or client of Franchisor, Franchisor's affiliates, franchisees of the System, or, of Franchisee, to any other person or business that is not a Deer Solution Business; and/or (e) engaging in any actions, inactions, and/or activities in violation of Articles 6.B. and/or 6.C. of this Agreement (all, individually and, collectively, referred to as the "Prohibited Activities"). Franchisee agrees that if Franchisee were to engage in the Prohibited Activities that such actions would be unfair, would constitute unfair competition and, would cause harm to Franchisor, the System, and other Deer Solution Business franchisees. Franchisee agrees that the foregoing covenants and obligations shall also apply to Franchisee's Owners and Spouses and that Franchisee's Owners and Spouses shall each execute and deliver to Franchisor the Franchise Owner and Spouse Agreement and Guaranty in the form attached to this Agreement as Exhibit 1.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to the 2025 Deer Solution Franchise Disclosure Document, the agreement outlines specific restrictions and consequences related to engaging in a Competitive Business during the term of the agreement. A Competitive Business is defined as any business similar to a Deer Solution Business, including those offering deer repellent services, deer damage control and repair, and also lawn care and landscaping services.
The franchise agreement prohibits franchisees from engaging in certain activities considered "Prohibited Activities" during the term of the agreement. These activities include owning or having a legal or equitable interest in a Competitive Business (with a minor exception of owning 3% or less in a publicly traded company), operating, managing, funding, or performing services for a Competitive Business, diverting business or customers from Deer Solution, and inducing customers to use a business that is not a Deer Solution Business.
The Deer Solution franchise agreement explicitly states that engaging in these Prohibited Activities would be unfair, constitute unfair competition, and cause harm to the franchisor, the Deer Solution system, and other franchisees. The agreement also extends these restrictions to the franchisee's owners and spouses, requiring them to sign a Franchise Owner and Spouse Agreement and Guaranty. Upon termination or expiration of the agreement, the franchisee must cease operating under the Deer Solution system and refrain from using any confidential information, licensed marks, or other proprietary elements of the system.