What immediate family members are included in the Deer Solution agreement's restrictions regarding disclosure of Know-How?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge that if you did disclose the Know-How to an immediate family member and your immediate family member used the Know-How to engage in activities that, for you, qualify as Prohibited Activities as defined above, that we and the System will be irreparably harmed.
You agree that as between you and us that you are in a better position to know if you permitted and/or provide an immediate family member with access to the Know-How.
Therefore, you agree that you will be presumed to have violated the terms of this Agreement if any member of your immediate family (i) engages in any Prohibited Activities during any period of time during which you are prohibited from engaging in the Prohibited Activities or (ii) uses or discloses the Know-How.
However, you may rebut this presumption by providing evidence conclusively demonstrating that you did not disclose the Know-How nor permit disclosure of the Know-How to the family member.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the agreement places restrictions on the franchisee and their immediate family members regarding the disclosure and use of the company's Know-How. The agreement states that if a franchisee discloses the Know-How to an immediate family member, and that family member uses it to engage in prohibited activities, it will cause irreparable harm to Deer Solution and its system.
The agreement presumes that the franchisee is in the best position to know if they have provided an immediate family member with access to the Know-How. Therefore, if an immediate family member engages in prohibited activities or uses/discloses the Know-How, the franchisee is presumed to have violated the agreement. However, the franchisee can rebut this presumption by providing evidence that they did not disclose the Know-How or permit its disclosure to the family member.
For a prospective Deer Solution franchisee, this means they must ensure that their immediate family members do not engage in any activities that could be considered a violation of the agreement, particularly concerning the use of Deer Solution's Know-How. The franchisee bears the responsibility of proving they did not disclose the Know-How if a family member is found to be in violation. This clause highlights the importance of maintaining confidentiality and control over proprietary information within the Deer Solution franchise system.