After the Deer Solution franchise relationship, where does the non-competition restriction apply regarding a Competitive Business?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
You represent, acknowledge, and agree that during the Restricted Period you will not engage in any Prohibited Activities; provided, however, that the Prohibited Activity relating to having an interest in a Competitive Business will only apply with respect to a Competitive Business that is located within or provides competitive goods or services to customers/clients who are located within the Restricted Territory.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the non-competition agreement after the franchise relationship (during the Restricted Period) restricts franchisees from engaging in Prohibited Activities. However, the restriction related to having an interest in a Competitive Business applies only to a Competitive Business located within or providing competitive goods or services to customers/clients within the Restricted Territory.
This means that after the franchise agreement ends, a former Deer Solution franchisee is limited from owning or being involved with a similar business that operates in the same geographic area where they used to operate their Deer Solution franchise. The "Restricted Territory" is defined elsewhere in the FDD, and it is important to understand its scope.
This post-term non-compete is fairly standard in franchising to protect the brand and other franchisees from unfair competition by someone who has learned the Deer Solution system. The geographic scope is key, as it dictates how far away a former franchisee must go to start a similar business without violating the agreement.