Is a Deer Solution franchisee allowed to use Confidential Information in any business other than the Deer Solution Business?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that, at all times, both during the Term of this Agreement and, after its expiration or termination, Franchisee: (a) shall not use the Confidential Information in any business or capacity other than the Deer Solution Business operated by Franchisee; (b) shall maintain the confidentiality of the Confidential Information at all times; (c) shall not make unauthorized copies of documents containing any Confidential Information; (d) shall take such reasonable steps as Franchisor may ask of Franchisee from time to time to prevent unauthorized use or disclosure of the Confidential Information; and (e) shall stop using the Confidential Information immediately upon the expiration, termination or Transfer of this Agreement. 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, franchisees are explicitly prohibited from using Confidential Information in any business other than their Deer Solution franchise. This restriction applies both during the term of the Franchise Agreement and even after its expiration or termination.
The definition of "Confidential Information" is broad, encompassing trade secrets, methods, standards, techniques, procedures, data, and information related to the Deer Solution business. This includes methods for development, marketing, and operation, as well as customer information, sales data, and the contents of the Operations Manual. The franchisee must maintain the confidentiality of this information at all times and prevent unauthorized use or disclosure.
This restriction extends not only to the franchisee but also to their Owners, Spouses, directors, officers, employees, and agents, provided they have had access to Confidential Information and have signed a confidentiality agreement. Upon termination or transfer of the Franchise Agreement, the franchisee must immediately cease using all Confidential Information. This is a standard practice in franchising to protect the franchisor's proprietary information and maintain a competitive advantage.