If a Deer Solution franchisee develops an improvement, who owns the rights to it?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that with regard to the Franchised Business, all customer lists, including the contents and information contained in all customer lists, constitute Confidential Information and an asset of Franchisor whether or not such information was supplied by Franchisor. During the Term, and in connection with the development, establishment, marketing, promotion and operation of the Franchised Business, Franchisee shall disclose to Franchisor all of Franchisee's ideas, concepts, methods, and products conceived or developed by Franchisee, any Owner, and/or Franchisee's affiliates, officers, directors, shareholders, partners, agents, members, representatives, independent contractors, servants and employees relating to the development and operation of Deer Solution Businesses and the System. Franchisee hereby assigns to Franchisor, and Franchisee agrees to procure an assignment of any such ideas, concepts, methods, and products that Franchisee is required to disclose to Franchisor under this Article 11.F. from each Owner and Franchisee's affiliates, officers, directors, shareholders, partners, agents, members, representatives, independent contractors, servants, and employees. Franchisor shall have no obligation to tender any lump sum payment, on-going payments, or any other consideration to Franchisee, any Owner, each Owner and Franchisee's affiliates, officers, directors, shareholders, partners, agents, members, representatives, independent contractors, servants, and employees with respect to any such idea, concept, method, technique, or product. Franchisee agrees that Franchisee shall not use, or allow any other person or entity to use, any such concept, method, technique, or product without obtaining Franchisor's prior written approval.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to the 2025 Deer Solution Franchise Disclosure Document, any ideas, concepts, methods, or products conceived or developed by a franchisee (or their affiliates, owners, agents, and employees) related to the Deer Solution business must be disclosed to Deer Solution. The franchisee then assigns all rights to these innovations to Deer Solution. This includes customer lists and their contents, which are considered confidential information and an asset of Deer Solution, regardless of who supplied the information.
Deer Solution is not obligated to provide any payment or consideration to the franchisee for these innovations. Furthermore, the franchisee is prohibited from using or allowing others to use these concepts, methods, or products without Deer Solution's prior written approval. This policy ensures that Deer Solution maintains control over any improvements or innovations to the system.
This clause is fairly common in franchising, as franchisors want to maintain uniformity and control over their brand and system. However, it is important for prospective Deer Solution franchisees to understand that any improvements they develop for the business become the property of the franchisor, and they will not receive any compensation for them. This could disincentivize franchisees from investing time and resources into developing new ideas for the business.