Who owns the Business Management System Data between Deer Solution and the franchisee?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor reserves the right to modify and designate alternative Business Management Systems as Franchisor determines in Franchisor's Reasonable Business Judgment.
At all times, Franchisor shall possess direct live access and storage based access to the Business Management System for the Franchised Business and to Franchisee's Business Management System Data.
- (9) At no cost to Franchisor, take such action as may be determined by Franchisor to: (a) provide and assign to Franchisor the Business Management System, the Business Management System Data, and all customer lists, customer information, and customer data; and (b) transfer, disconnect, and/or otherwise assign, as directed by Franchisor, all telephone numbers, email addresses, yellow pages telephone directories, telephone directory type listings, Web Based Media listings, accounts and log-in information used in connection with Franchisee's former Deer Solution Business and/or otherwise associated with the System and/or the Licensed Marks, cancel Franchisee's interests in same as such cancellation may be directed by Franchisor, and effectuate, perform, honor, and comply with Franchisee's obligations under the Assignment of Telephone Numbers and Digital Media Accounts attached to this Agreement as Exhibit 3;
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, Deer Solution retains ownership of the Business Management System Data. The FDD states that Deer Solution has direct access and storage access to the Business Management System for the Franchised Business and to the Franchisee's Business Management System Data. Upon termination of the Franchise Agreement, the franchisee must assign the Business Management System and the Business Management System Data to Deer Solution.
This means that while a franchisee operates a Deer Solution franchise, they input and manage data within the Business Management System, but Deer Solution maintains ultimate control and access to this data. This includes customer information, inventory, and sales data.
For a prospective franchisee, this has several implications. First, Deer Solution can monitor the franchisee's business performance in real-time. Second, upon termination of the franchise agreement, the franchisee loses access to all the data they have accumulated during the term of the agreement, including customer lists and sales history. This is a fairly standard practice in franchising, as the data is considered part of the franchisor's intellectual property and system. However, it is important for franchisees to understand that they are not building an asset that they can take with them if they leave the Deer Solution system.