What protection does Deer Solution Franchising LLC agree to provide the franchisee regarding infringement or unfair competition claims under Article 11.C of the Franchise Agreement?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Nothing in this Agreement should be considered a waiver of any right conferred upon franchisee by New York General Business Law, Sections 680-695.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
Based on the 2025 Deer Solution Franchise Disclosure Document, Article 18.Z. of the New York Franchise Agreement Amendment states that nothing in the agreement should be considered a waiver of any right conferred upon the franchisee by New York General Business Law, Sections 680-695. This amendment applies specifically to franchisees operating in New York and aims to ensure that franchisees do not waive their rights under New York franchise law. This provision is included to comply with New York General Business Law, Article 33, Sections 680 through 695, and related regulations.
Additionally, the Franchise Agreement outlines restrictive covenants related to unfair competition. During the term of the agreement, franchisees are prohibited from engaging in activities such as owning or having an interest in a competitive business (with a minor exception of owning 3% or less in a publicly traded company), operating or managing a competitive business, diverting business or customers from the franchisor, and inducing customers to other non-Deer Solution businesses. These covenants also apply to the franchisee's owners and spouses, who must sign a Franchise Owner and Spouse Agreement and Guaranty.
Deer Solution also has the right to injunctive relief if a franchisee violates the terms of the agreement, causing irreparable harm to the franchisor and other franchisees. While Deer Solution Franchising LLC may seek injunctive relief without bond, the franchisee's sole remedy, in the event of the entry of such injunction, will be the dissolution of such injunction, if warranted, upon a hearing duly held. If a court requires a bond, the amount shall not exceed $1,000. These remedies are not exclusive and can be combined with others, including specific performance and recovery of monetary damages.