Is the non-compete period for a terminated Deer Solution franchisee tolled during any periods of non-compliance?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
You and each Owner and spouse shall promise in writing that, among other things, during the term of the Franchise Agreement you will not participate in any business that in any way competes with the Franchised Business, and that for 24 months after the expiration of termination of the Franchise Agreement (with said period being tolled during any periods of non-compliance), you will not participate in any competitive business located within and/or servicing customers located within your Operating Territory and a 25 mile radius surrounding your Operating Territory. Further you will not participate in any competitive business located within and/or servicing customers located within a 25 mile radius of any other Deer Solution Business and/or the operating territory of any other Franchised Business.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 39–40)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the post-term non-compete period is tolled during periods of non-compliance. Specifically, after the expiration or termination of the Franchise Agreement, the franchisee and their owners and spouses are restricted from participating in any competitive business within their Operating Territory and a 25-mile radius surrounding it, as well as within a 25-mile radius of any other Deer Solution Business. This restriction lasts for 24 months, but this period is extended by any time the franchisee is in non-compliance with the agreement.
This tolling provision means that if a franchisee violates the Franchise Agreement, the 24-month non-compete clock pauses. It only resumes once the franchisee returns to compliance. This could significantly extend the period during which a former franchisee is barred from engaging in competitive activities.
For a prospective Deer Solution franchisee, this highlights the importance of adhering strictly to the terms of the Franchise Agreement. Any deviation, even if seemingly minor, could prolong the non-compete obligations after the franchise relationship ends. Franchisees should seek legal counsel to fully understand what constitutes "non-compliance" under the agreement and the potential implications for their future business endeavors.