Is a Deer Solution franchisee allowed to operate a Competitive Business during the term of the Franchise Agreement?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
6.E. RESTRICTIVE COVENANTS: UNFAIR COMPETITION AND POST-TERMINATION NON-COMPETITION OBLIGATIONS
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, franchisees face restrictions on operating a competitive business during the term of their Franchise Agreement. A "Competitive Business" is defined broadly as any business similar to Deer Solution, including those offering deer repellent services, deer damage control, repair, lawn care, or landscaping.
Deer Solution franchisees are prohibited from owning or having any legal or equitable interest in a Competitive Business, whether as a sole proprietor, owner, partner, member, or shareholder of a Corporate Entity. However, a franchisee can own an interest of 3% or less in a publicly traded company that is a Competitive Business. They are also restricted from operating, managing, funding, or performing services for a Competitive Business in any capacity, including as an employee, officer, director, manager, consultant, representative, agent, or creditor.
These restrictions also extend to preventing franchisees from diverting business or customers from Deer Solution or its affiliates and franchisees. Franchisees are prohibited from inducing any customer or client of Deer Solution, its affiliates, or other franchisees to any business that is not a Deer Solution Business. These covenants and obligations also apply to the franchisee's owners and spouses, who must sign a Franchise Owner and Spouse Agreement and Guaranty.
These non-compete obligations are typical in franchising to protect the brand, customer relationships, and the overall system. Prospective Deer Solution franchisees should carefully consider these restrictions and how they might impact their other business interests or future opportunities.