What happens to the restricted period for a Deer Solution franchisee if they engage in prohibited activity?
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 constitute a waiver of the breach, nor does it impair any of Deer Solution's rights or remedies relating to the breach.
This means that if a Deer Solution franchisee violates the non-compete agreement by, for example, operating a competing business during the restricted period, the length of time they are prohibited from competing with Deer Solution after the franchise agreement ends will be increased by the duration of the violation.
This provision protects Deer Solution's interests by ensuring that franchisees do not unfairly compete with the brand after their franchise agreement terminates. It also reinforces the importance of adhering to the non-compete terms outlined in the franchise agreement. Prospective franchisees should carefully consider these restrictions and the potential consequences of violating them.