What is the Deer Solution franchisee's responsibility to prevent immediate family members from accessing Know-How?
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 an ongoing responsibility to protect the franchisor's confidential information, referred to as "Confidential Information", which includes "Know-How". This obligation extends throughout the term of the Franchise Agreement and even after it expires or terminates. Franchisees must not use the Confidential Information in any business other than their Deer Solution franchise. They are required to maintain its confidentiality, avoid making unauthorized copies of documents containing it, and take reasonable steps requested by Deer Solution to prevent unauthorized use or disclosure. Upon termination or transfer of the agreement, the franchisee must immediately cease using the Confidential Information.
These obligations specifically apply to the franchisee's Owners and Spouses, who are also required to sign a Franchise Owner and Spouse Agreement and Guaranty. Furthermore, the obligations extend to the franchisee's directors, officers, employees, and agents if their roles require access to Confidential Information, provided they have signed and delivered a Confidentiality Agreement to Deer Solution.
In practical terms, a Deer Solution franchisee must actively manage and control access to the company's trade secrets and proprietary information. This includes implementing security measures, training staff on confidentiality, and ensuring that all relevant parties, including family members, understand and adhere to these restrictions. Failure to comply with these confidentiality obligations could result in legal action from Deer Solution and potential damage to the franchise system.