What is the geographic scope of the non-compete restriction following the termination of a Deer Solution franchise?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
"Restricted Territory" refers to and means the geographic area: (a) comprising Franchisee's Operating Territory; (b) comprising a 25 mile radius surrounding Franchisee's Operating Territory or, if Franchisee is not granted or designated an operating territory, then a 25 mile radius surrounding Franchisee's Administrative Office); (c) comprising each of the operating territories, respectively, of other Deer Solution Businesses that are in operation or under development during all or any part of the Restricted Period; provided, however, that if a court of competent jurisdiction determines that the foregoing Restricted Territory is too broad to be enforceable, then the "Restricted Territory" means the geographic area within Franchisee's Operating Territory plus a 25 mile radius surrounding Franchisee's Operating Territory or, if Franchisee is not granted or designated an operating territory, then a 25 mile radius surrounding Franchisee's Administrative Office.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 39–40)
What This Means (2025 FDD)
According to the 2025 Deer Solution Franchise Disclosure Document, the geographic scope of the post-termination non-compete obligation is defined by the "Restricted Territory". This area includes the franchisee's Operating Territory, plus a 25-mile radius around it. If the franchisee was not granted a specific operating territory, the 25-mile radius extends from the franchisee's Administrative Office. The Restricted Territory also encompasses the operating territories of other Deer Solution businesses that were in operation or under development during any part of the Restricted Period.
However, the FDD notes a caveat: if a court deems the defined Restricted Territory too broad to be enforceable, the Restricted Territory will be reduced to include only the franchisee's Operating Territory plus a 25-mile radius around it, or around the Administrative Office if no Operating Territory was assigned. This provision suggests that Deer Solution anticipates potential legal challenges to the scope of its non-compete agreement and has built-in a fallback position to ensure some level of protection.
This post-termination restriction prevents a former Deer Solution franchisee from directly competing with the Deer Solution system within a defined geographic area. This is a fairly standard practice in franchising to protect the brand's market share and customer base. A prospective franchisee should carefully consider the size and location of their Operating Territory, as this will directly impact the area in which they are restricted from operating a similar business after the franchise agreement ends.