Are the Owners and Spouses of a Deer Solution franchisee also subject to the restrictive covenants?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that the foregoing covenants and obligations shall also apply to Franchisee's Owners and Spouses and that Franchisee's Owners and Spouses shall each execute and deliver to Franchisor the Franchise Owner and Spouse Agreement and Guaranty in the form attached to this Agreement as Exhibit 1.
Franchisee agrees that only through the course of entering into this Agreement is Franchisee being provided with access to the System, Franchisor's training, use of the Licensed Marks and, access to the Operations Manual and Confidential Information. Franchisee agrees that competition by Franchisee, Owners, Spouses and/or Immediate Family Members could jeopardize the entire System and cause irreparable harm to Franchisor and franchisees of Deer Solution Businesses. Accordingly, Franchisee and Franchisee's Owners and, Spouses, agree to comply with the restrictive covenants set forth in this Article 6 and throughout this Agreement.
Franchisee agrees that Franchisee's failure and/or Franchisee's Owner(s) failure to comply with the restrictive covenants and obligations set forth in this Article 6 will cause irreparable harm to Franchisor and/or other Deer Solution Business franchisees for which there is no adequate remedy at law. Franchisee agrees that any violation of these Article 6 covenants and obligations by either Franchisee and/or any Owner(s) will entitle Franchisor to injunctive relief. Franchisee agrees that Franchisor may apply for such injunctive relief, without bond, but upon due notice, in addition to such further and other relief as may be available at equity or law, and the sole remedy of Franchisee, in the event of the entry of such injunction, will be the dissolution of such injunction, if warranted, upon a hearing duly held (all claims for damages by reason of the wrongful issuance of any such injunction being expressly waived hereby). If a court requires the filing of a bond notwithstanding the preceding sentence, the Franchisee and Franchisor agree that the amount of the bond shall not exceed $1,000. Franchisor's remedies under this Article 6.H. are not exclusive of any other, but may be combined with others under this Agreement, or at law or in equity, including injunctive relief, specific performance, and recovery of monetary damages.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the restrictive covenants apply not only to the franchisee but also to the franchisee's owners and spouses. Specifically, the franchisee, owners, and spouses must comply with the restrictive covenants outlined in Article 6 of the agreement. These individuals are required to sign a 'Franchise Owner and Spouse Agreement and Guaranty,' which is attached as Exhibit 1 to the agreement. This agreement ensures that owners and spouses are also bound by obligations related to brand protection, confidentiality, and non-competition.
Deer Solution requires these additional agreements because the franchisor provides access to its system, training, licensed marks, operations manual, and confidential information only through the franchise agreement. The franchisor believes that competition from the franchisee, owners, spouses, or immediate family members could jeopardize the entire Deer Solution system and cause irreparable harm to the franchisor and other franchisees. Therefore, these restrictive covenants are put in place to protect the Deer Solution system.
If a franchisee or their owners fail to comply with these restrictive covenants, it will cause irreparable harm to Deer Solution and its franchisees. In the event of a breach, Deer Solution is entitled to seek injunctive relief, without bond (though if a bond is required, it will not exceed $1,000), in addition to any other remedies available under the agreement or at law. This includes specific performance and recovery of monetary damages. This measure underscores the importance Deer Solution places on upholding these covenants for the protection of its brand and franchise network.