Does the Deer Solution franchise agreement specify any exceptions to the 'Competitive Business' definition?
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
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the definition of a "Competitive Business" is broad, encompassing any business similar to a Deer Solution Business, including those offering deer repellent services or deer damage control and repair. During the franchise term and any renewals, this definition expands to include businesses providing lawn care or landscaping services. This means that franchisees are restricted from engaging in these related services, even if they don't directly compete with deer repellent services.
However, there is an exception to these restrictions. A franchisee is allowed to own a small stake in a publicly traded company that might be considered a Competitive Business. Specifically, the franchise agreement permits owning an interest of 3% or less in such a company. This exception allows for minor investment opportunities without violating the non-compete terms.
This restriction and limited exception are fairly standard in franchising to protect the brand and prevent franchisees from directly competing with the franchised business, or from using the franchisor's knowledge to benefit a competing business. The inclusion of lawn care and landscaping services in the definition of "Competitive Business" indicates that Deer Solution aims to prevent franchisees from diverting their resources and expertise to closely related services that could potentially draw customers away from the core Deer Solution offerings. Prospective franchisees should carefully consider these limitations and how they might affect their business plans.