For Deer Solution franchisees, does the restriction on having an interest in a Competitive Business apply regardless of location?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that during the Term of this Agreement, Franchisee shall not engage in the following activities (the "Prohibited Activities"): (a) owning and/or having any legal or equitable interest whether, as an individual proprietor, owner, partner, member or shareholder of a Corporate Entity, or, in any similar capacity, in a Competitive Business other than, owning an interest of 3% or less in a publicly traded company that is a Competitive Business; (b) operating, managing, funding and/or performing services whether, as an employee, officer, director, manager, consultant, representative, agent, and/or creditor or, in any similar capacity, for or benefitting a Competitive Business; (c) diverting or attempting to divert any business or customers from Franchisor or, one of Franchisor's affiliates or franchisees; (d) inducing any customer or client of Franchisor, Franchisor's affiliates, franchisees of the System, or, of Franchisee, to any other person or business that is not a Deer Solution Business; and/or (e) engaging in any actions, inactions, and/or activities in violation of Articles 6.B. and/or 6.C. of this Agreement (all, individually and, collectively, referred to as the "Prohibited Activities"). Franchisee agrees that if Franchisee were to engage in the Prohibited Activities that such actions would be unfair, would constitute unfair competition and, would cause harm to Franchisor, the System, and other Deer Solution Business franchisees. Franchisee agrees that the foregoing covenants and obligations shall also apply to 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.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to the 2025 Deer Solution Franchise Disclosure Document, during the term of the agreement, franchisees are restricted from engaging in "Prohibited Activities." These activities include owning or having any legal or equitable interest in a Competitive Business, which is defined as any business similar to Deer Solution, including those offering deer repellent services, deer damage control, repair, lawn care, or landscaping. However, this restriction does not apply if the franchisee owns an interest of 3% or less in a publicly traded company that is a Competitive Business.
This restriction applies to the franchisee, their owners, and spouses, all of whom must sign a Franchise Owner and Spouse Agreement and Guaranty. The agreement specifies that engaging in Prohibited Activities would be considered unfair competition and would cause harm to Deer Solution, the System, and other Deer Solution Business franchisees.
While the FDD defines "Competitive Business" and outlines prohibited activities, it does not explicitly state whether these restrictions apply regardless of location. The document defines a "Restricted Territory" in the context of post-termination non-competition obligations, but it does not specify whether the in-term non-compete extends beyond the franchisee's operating territory. A prospective franchisee should seek clarification from Deer Solution regarding the geographic scope of the in-term non-compete obligations to fully understand the limitations.