What is the Deer Solution franchisee's obligation regarding the confidentiality of information after the termination of the Franchise Agreement?
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 have specific and ongoing obligations regarding confidential information, even after the franchise agreement expires or is terminated. These obligations are designed to protect Deer Solution's proprietary information and maintain the integrity of its business system.
Specifically, the franchisee must not use the confidential information in any business other than the Deer Solution business they operated. They are required to maintain the confidentiality of the information at all times and prevent unauthorized copies of documents containing confidential information. The franchisee must also take reasonable steps to prevent unauthorized use or disclosure of the confidential information, as directed by Deer Solution. Upon termination or transfer of the agreement, the franchisee must immediately stop using the confidential information.
These obligations extend not only to the franchisee but also to their owners, spouses, directors, officers, employees, and agents, where disclosure of confidential information was necessary for the franchise's operations. These individuals may also be required to sign confidentiality agreements. Furthermore, all customer lists and their contents are considered confidential information and an asset of Deer Solution, regardless of whether the information was initially provided by Deer Solution. These stipulations ensure that Deer Solution's trade secrets, operational methods, and customer data remain protected, preventing unfair competition and preserving the brand's value.