Does the Deer Solution franchise agreement specify any financial penalties for operating a Competitive Business?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
n was necessary for the operations of the Franchised Business and where such director, officer, employee and/or agent previously executed and timely delivered to Franchisor the Confidentiality Agreement in the form attached as Exhibit 2.
6.D. RESTRICTIVE COVENANTS: UNFAIR COMPETITION AND IN-TERM NON-COMPETITION OBLIGATIONS
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 Deer Solution's 2025 Franchise Disclosure Document, the franchise agreement outlines restrictions on franchisees regarding unfair competition during the term of the agreement. Specifically, franchisees are prohibited from engaging in activities such as owning, operating, or providing services to a Competitive Business, which includes businesses offering deer repellent services, deer damage control, repair, lawn care, or landscaping. A franchisee is allowed to own an interest of 3% or less in a publicly traded company that is a Competitive Business.
If a Deer Solution franchisee engages in these prohibited activities, it is considered unfair competition and would cause harm to Deer Solution, the System, and other franchisees. While the agreement states that engaging in prohibited activities would be unfair and cause harm, the excerpt does not explicitly state any specific financial penalties for violating these in-term non-compete obligations.
Upon termination or expiration of the agreement, the franchisee must pay all outstanding sums and fees due to Deer Solution, including Royalty Fees and Advertising Contributions. However, this requirement applies generally upon termination and is not specifically tied to operating a competitive business. A prospective franchisee should inquire with Deer Solution about specific financial penalties or other remedies Deer Solution may pursue if a franchisee violates the in-term non-compete obligations.