Does Deer Solution grant franchisees an exclusive territory?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
uest, are relevant to us.
Multi-Unit Development Agreement
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
Establishment of Additional Franchised Businesses
You do not have the right to establish additional Deer Solution Businesses.
Options and Rights of First Refusal to Acquire Additional Franchises
You are not granted any options, rights of first refusal, or similar rights to acquire additional franchises.
Territory Rights
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. However, during the term of the Franchise Agreement, provided that you are not in default of your obligations to us or our affiliates and except as to our Reserved Rights set forth below, we will not open and operate and we will not grant another franchisee the right to open and operate a Deer Solution Business within your Operating Territory.
We and our affiliates reserve to ourselves the exclusive right on any and all terms and conditions that we deem advisable and, without any compensation or consideration to you (Franchise Agreement, Article 2.D.), to engage in the following activities (our "Reserved Rights"): (a) operate and grant to others the right to develop and operate Deer Solution Businesses using the System and Licensed Marks outside your Operating Territory, as we deem appropriate and irrespective of the proximity to your Operating Territory; (b) acquire, merge with or otherwise affiliate with one or more businesses of any kind, including businesses that offer and sell products and services that are the same as, or similar to, your Deer Solution Business, and after such acquisition, merger or affiliation to own and operate and to franchise, or license others to own and operate and to continue to own and operate such businesses of any kind, even if such businesses offer and sell products and services that are the same as or similar to a the Franchised Business (but not utilizing the Licensed Marks) within your Operating Territory; (c) be acquired by or merge with or otherwise affiliate with one or more businesses of any kind, including businesses that offer and sell products and services that are the same as or similar to the Franchised Business, even if such business or businesses presently or, in the future, own and operate and franchise or license others to own and operate businesses that offer and sell products and services that are the same as or similar to your Deer Solution Business (but not utilizing the Licensed Marks) within your Operating Territory; (d) use the Licensed Marks and System to distribute the Approved Services and Products offered and sold by the Franchised Business or products and services similar to the Approved Services and Products offered and sold by the Franchised Business in alternative channels of distribution including the internet, catalog sales, telemarketing, or other direct marketing sales (referred to as "Alternative Channels of Distribution") within or outside your Operating Territory; (e) use the Licensed Marks and System to distribute the Approved Services and Products offered and sold by the Franchised Business or services and products similar to the Approved Services and Products offered and sold by the Franchised Business in captive market sites including, but not limited to, nontraditional locations such as malls, transportation centers and limited access venues, within or outside your Operating Territory (referred to as "Closed Markets"); (f) use the Licensed Marks and System to offer, sell, and provide the Approved Services and Products offered and sold by the Franchised Business or products and services similar to the Approved Services and Products offered and sold by the Franchised Business on behalf of customers of local, regional, and/or national corporate accounts (referred to as "Corporate Accounts") within or outside your Operating Territory; and (g) use the Licensed Marks and System and to license others to use the Licensed Marks and System, to engage in all other activities not expressly prohibited by the Franchise Agreement. Other than the Reserved Rights above, there are no other circumstances were we would alter your territorial rights.
Corporate Accounts Program
If we establish a Corporate Accounts Program where we engage in a contract or service agreement with a Corporate Account service provider, we will offer you the opportunity to participate in the program under the guidelines and rules that we develop from time to time and subject to the pricing criteria and requirements that we establish. You will have an option to refuse to participate in Corporate Accounts Programs, but if you do, you agree that we can service the Corporate Accounts in your territory or authorize others, including other franchisees, to perform work for the Corporate Accounts. All pricing and fees charged in connection with Corporate Accounts will be at rated negotiated and determined by us. We or our designee are not obligated to pay you for servicing Corporate Account customers that you have elected not to service under our Corporate Accounts Program.
Restrictions on Us from Soliciting or Accepting Orders in Your Territory
There are no restrictions on us from soliciting or accepting orders from customers inside your territory. We reserve the right to use other channels of distribution, such as the internet, catalog sales, telemarketing, or other direct marketing sales, to make sales within your territory using our principal trademarks or using trademarks different from the ones you will use under the Franchise Agreement. We do not pay any compensation to you for soliciting or accepting orders from inside your territory.
There are no restrictions on us to solicit or accept orders from consumers inside your territory, and we do have the right to use other channels of distribution, such as the internet, catalog sales, telemarketing or other direct marketing to make sales inside your territory.
Soliciting by You Outside Your Territory and Territory Rules
You must operate your Deer Solution Business and provide the Approved Services and Products exclusively within your Operating Territory. The marketing of your Deer Solution Business must be targeted to your Operating Territory and you are not permitted to directly solicit customers outside of your Operating Territory. Provided that you do not engage in any Direct Solicitation of customers outside of your Operating Territory or, within the Operating Territory of another Deer Solution Business, you may provide, subject to our written approval, Approved Services and Products within an Open Area, subject to the following definitions, rules, and limited circumstances:
- (a) You cannot engage in any Direct Solicitations outside of your Operating Territory. The term "Direct Solicitation" refers to and means "communications and/or contacts occurring through in person contact, telephone, mail, e-mail, direct mail, distributed print media, digital media and/or other forms of marketing directed toward customers, potential customers, or referral sources of a Deer Solution Business;
- (b) You cannot provide Approved Services and Products in the operating territory of another Deer Solution Business (an "Assigned Area");
- (c) An "Open Area" is a geographic area that (i) is not an Assigned Area; and (ii) is located within a zip code designated by us;
- (d) You must obtain our written approval, in each instance, before providing Approved Services and Products to a customer in an Open Area; and
- (e) Once an Open Area becomes an Assigned Area you will no longer be authorized to provide Approved Services and Products to any customers within the Open Area and you must turn over to us, for the benefit of another Deer Solution Business franchisee, all information and records related to customers in the Open Area.
Competition by Us Under Different Trademarks
We do not have plans to operate or franchise a business under trademarks different from the Licensed Marks that sells or will sell goods or services similar to those that will be offered by you through the Franchised Business.
Source: Item 12 — TERRITORY (FDD pages 35–37)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, franchisees will not receive an exclusive territory. The FDD specifies that a Deer Solution franchisee may face competition from other franchisees, outlets that Deer Solution owns, other distribution channels, or competitive brands that Deer Solution controls. However, Deer Solution states that, during the term of the Franchise Agreement, provided the franchisee is not in default, Deer Solution will not open or operate a Deer Solution Business, nor grant another franchisee the right to do so, within the franchisee's Operating Territory, except for Reserved Rights.
The Operating Territory granted to a Deer Solution franchisee will vary in scope and size compared to other franchisees, depending on local factors, market conditions, and the number of Territories purchased. Generally, a territory will consist of a geographic area that includes approximately 40,000 single family dwellings with an annual household income of at least $125,000. Franchisees may add Additional Territories, subject to availability, Deer Solution's approval, and payment of additional Initial Franchise Fees. Each Additional Territory will consist of a geographic area that includes approximately 40,000 Targeted Households.
Deer Solution also reserves specific rights, including operating or franchising Deer Solution Businesses outside the franchisee's Operating Territory, affiliating with other businesses (even those offering similar services), using licensed marks for alternative distribution channels (like the internet or telemarketing), and using licensed marks in captive market sites or for corporate accounts, all without compensating the franchisee. Deer Solution can also service Corporate Accounts in a franchisee's territory or authorize others to do so if the franchisee declines to participate in the Corporate Accounts Program.
While franchisees must operate and market their Deer Solution Business exclusively within their Operating Territory and cannot directly solicit customers outside of it, they may provide services in "Open Areas" (areas not assigned to another franchisee) with Deer Solution's written approval. These stipulations regarding territory are important for prospective franchisees to consider, as they directly impact the scope of their operations, potential competition, and marketing strategies.