What is the Deer Solution franchisee's obligation regarding the use of Confidential Information?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
mmediate Family Members could jeopardize the entire System and cause irreparable harm to Franchisor and franchisees of Deer Solution Businesses. Accordingly, Franchisee and Franchisee's Owners and, Spouses, agree to comply with the restrictive covenants set forth in this Article 6 and throughout this Agreement.
6.B. RESTRICTIVE COVENANTS: KNOW-HOW
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 Know-How in any business or capacity other than the operation of the Franchised Business pursuant to this Agreement and as instructed by Franchisor; (b) shall maintain the confidentiality of the Know-How at all times; (c) shall not make unauthorized copies of documents containing any Know-How; (d) shall take all reasonable steps that Franchisor requires from time to time to prevent unauthorized use or disclosure of the Know-How; and (e) shall stop using the Know-How 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 Know-How 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.
6.C. RESTRICTIVE COVENANTS: CONFIDENTIAL INFORMATION
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.
**6.D.
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 obligations regarding the use and protection of the company's Confidential Information, both during the term of the Franchise Agreement and after its expiration or termination. This obligation extends not only to the franchisee but also to their owners, spouses, directors, officers, employees, and agents. These individuals may be required to sign agreements to ensure confidentiality. Customer lists are explicitly identified as Confidential Information and an asset of Deer Solution, regardless of who initially supplied the information.
During the term of the agreement, franchisees must not use the Confidential Information in any business other than their Deer Solution franchise. They are required to maintain the confidentiality of the information at all times and prevent unauthorized use or disclosure. This includes refraining from making unauthorized copies of documents containing Confidential Information and taking reasonable steps requested by Deer Solution to prevent unauthorized use or disclosure. Upon expiration, termination, or transfer of the Franchise Agreement, the franchisee must immediately cease using the Confidential Information.
Furthermore, franchisees are obligated to disclose to Deer Solution any ideas, concepts, methods, and products they develop related to the Deer Solution business. These innovations become the property of Deer Solution, and the franchisee must obtain prior written approval from Deer Solution before using or allowing others to use such concepts. Failure to comply with these confidentiality obligations can lead to termination of the Franchise Agreement. Franchisees must notify Deer Solution of any known or suspected breaches of the Confidentiality Agreement and take steps to prevent further dissemination of Confidential Information.
These stipulations are typical in franchising, as franchisors need to protect their proprietary information and maintain a consistent brand and operational standards across all franchise locations. For a prospective Deer Solution franchisee, understanding and adhering to these confidentiality obligations is crucial. Failure to do so could result in legal repercussions and termination of the franchise agreement. It is important to carefully review the definition of "Confidential Information" in the Franchise Agreement to fully understand the scope of these obligations.