What is the Deer Solution franchisee's obligation regarding the confidentiality of information upon Franchisee's Transfer of the Franchise Agreement?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
chisee shall immediately pay to Franchisor all sums and fees due from Franchisee to Franchisor under the terms of this Agreement including, but not limited to Royalty Fees and Advertising Contributions and all other sums and fees due from Franchisee to Franchisor and/or Franchisor affiliates and/or suppliers for products and services including, but not limited to, System Supplies.
17.B. CEASE OPERATIONS AND PROTECTION OF THE SYSTEM
Upon expiration, termination, or Transfer of this Agreement for any reason, Franchisee shall immediately:
- (1) Permanently cease to be a franchise owner of the Deer Solution Business that was the subject of this Agreement and cease to operate such Deer Solution Business under the System;
- (2) Refrain from directly or indirectly, holding oneself/itself out to any person or entity, or represent themselves/itself as a present or former Deer Solution franchisee;
- (3) Permanently cease to use, in any manner: (a) the System including, without limitation, the Confidential Information, the Licensed Marks, the Business Management System Data, and the Operations Manual; (b) any methods, procedures, or techniques associated with the System in which Franchisor possesses proprietary rights or that constitute Franchisor's trade secrets; (c)
System Supplies, including communicating with or ordering products from Franchisor's designated suppliers and vendors of System Supplies; (d) the Approved Services and Products;
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to the 2025 Deer Solution Franchise Disclosure Document, upon the transfer of the Franchise Agreement, the franchisee must immediately cease using the Confidential Information. This includes the System, Licensed Marks, Business Management System Data, and the Operations Manual. The franchisee must also stop using any methods, procedures, or techniques associated with the Deer Solution System in which Deer Solution possesses proprietary rights or that constitute Deer Solution's trade secrets.
Furthermore, the franchisee is prohibited from using System Supplies, communicating with or ordering products from Deer Solution's designated suppliers and vendors. They must also cease using Approved Services and Products, as well as any advertising, marketing, media, and other information associated with Deer Solution. This extends to confidential methods, procedures, product descriptions, techniques, trade secrets, proprietary marks, distinctive forms, slogans, symbols, signs, stationary, advertising material, articles, logos, devices, items, and all other tangible or intangible things associated with Deer Solution.
In practical terms, this means that a franchisee selling their Deer Solution business must completely relinquish all proprietary knowledge, materials, and systems associated with the franchise. This is a standard practice in franchising to protect the brand's intellectual property and ensure consistency across all franchise locations. The new transferee's employees, directors, officers, independent contractors, and agents who will have access to Confidential Information must execute the Confidentiality Agreement attached as Exhibit 2.