If a Deer Solution franchisee engages in Prohibited Activities during the Restricted Period, what happens to 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 excuse the breach of contract, nor does it impair any of Deer Solution's rights or remedies pertaining to the breach.
This clause means that if a Deer Solution franchisee violates the non-compete agreement after their franchise agreement ends, the length of time they are restricted from competing with Deer Solution will be extended by the amount of time they were in violation. For example, if the franchisee has a one-year non-compete agreement and violates it for three months, the non-compete period will be extended by three months, resulting in a total non-compete period of 15 months.
Deer Solution emphasizes that engaging in Prohibited Activities constitutes unfair competition and will irreparably harm Deer Solution and the System. The franchisee also acknowledges that the restriction is fair and reasonable. This highlights the importance Deer Solution places on protecting its business interests and the potential legal and financial repercussions for franchisees who violate these terms.