What happens if a Deer Solution franchisee engages in prohibited activities during the restricted period?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
If you engage in any Prohibited Activities during the Restricted Period, then you agree that your Restricted Period will be extended by the period of time during which you were engaging in the prohibited activity (any such extension of time will not be construed as a waiver of your breach or otherwise impair any of our rights or remedies relating to your breach).
You acknowledge and agree that this restriction is fair and reasonable and that if you did engage in a Prohibited Activity that such actions would constitute acts of unfair competition and will irreparably harm us and the System.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, if a franchisee engages in any prohibited activities during the restricted period, the restricted period will be extended by the amount of time the franchisee was engaging in the prohibited activity. This extension does not waive Deer Solution's right to address the breach.
The FDD states that engaging in prohibited activities during the restricted period constitutes unfair competition and will irreparably harm Deer Solution and the System.
Prohibited activities include owning or having an interest in a competitive business (with a limited exception for owning 3% or less of a publicly traded company), operating or performing services for a competitive business, diverting business or customers from Deer Solution, or inducing customers to use a business that is not a Deer Solution business.