Are Deer Solution franchise owners and spouses subject to the same covenants and obligations regarding confidential information as the franchisee?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that the foregoing covenants and obligations shall also apply to: (a) 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; and (b) Franchisee's directors, officers, employees and agents where disclosure of the Confidential Information 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.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, franchise owners and their spouses are indeed subject to the same confidentiality obligations as the franchisee. The franchisee must ensure that their owners and spouses also comply with these restrictions. Specifically, owners and spouses are required to sign and deliver a 'Franchise Owner and Spouse Agreement and Guaranty,' which is attached as Exhibit 1 to the Franchise Agreement. This agreement legally binds them to the same confidentiality standards as the franchisee. This measure is in place to protect Deer Solution's confidential information and system-wide integrity.
This requirement means that not only the franchisee but also their owners and spouses must maintain the confidentiality of Deer Solution's proprietary information, including trade secrets, customer lists, and operational methods. They are prohibited from using this information in any business other than the Deer Solution franchise. They must also prevent unauthorized disclosure or use of the confidential information. This obligation extends beyond the term of the franchise agreement, meaning that even after the franchise expires or terminates, the owners and spouses remain bound by these confidentiality obligations.
For a prospective Deer Solution franchisee, this has significant implications. It is crucial to ensure that all owners and spouses fully understand and agree to these confidentiality obligations before entering into the franchise agreement. The franchisee is responsible for ensuring that these individuals sign the required agreement. Failure to comply with these confidentiality obligations can result in legal action and potential termination of the franchise agreement. This requirement is fairly standard in franchising, as franchisors seek to protect their intellectual property and maintain a competitive advantage.