What is the recipient acknowledging regarding the fairness and reasonableness of the Deer Solution franchise agreement terms?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
- (f) Reasonableness of Covenants and Restrictions. You acknowledge and agree that: (i) the terms of this Agreement are reasonable both in time and in scope of geographic area; and (ii) you have sufficient resources and business experience and opportunities to earn an adequate living while complying with the terms of this Agreement. YOU WAIVE ANY RIGHT TO CHALLENGE THE TERMS OF THIS AGREEMENT AS BEING OVERLY BROAD, UNREASONABLE OR OTHERWISE UNENFORCEABLE. Although you and we both believe that the covenants in this Agreement are reasonable in terms of scope, duration and geographic are, we may at any time unilaterally modify the terms of this Article 4 (Intellectual Property, Brand Protection and Non-Competition Covenants and Restrictions) by limiting the scope of the Prohibited Activities, narrowing the definition of a Competitive Business, shortening the duration of the Restricted Period, reducing the geographic scope of the Restricted Territory and/or reducing the scope of any other covenant imposed upon you under this Article 4 to ensure that the terms are enforceable under applicable law.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, franchisees acknowledge and agree that the terms of the franchise agreement are reasonable in both time and geographic scope. They also acknowledge having sufficient resources, business experience, and opportunities to earn an adequate living while adhering to the agreement's terms.
Importantly, the franchisee waives any right to challenge the agreement's terms as overly broad, unreasonable, or unenforceable. However, Deer Solution retains the right to unilaterally modify certain terms, such as those related to prohibited activities, competitive business definitions, restricted periods, or geographic scope, to ensure enforceability under applicable law.
This waiver and the franchisor's right to modify terms unilaterally could have significant implications for a prospective Deer Solution franchisee. While the franchisee agrees upfront that the terms are reasonable, they give up the ability to argue otherwise, even if their circumstances change. The franchisor's ability to modify terms provides flexibility but also introduces uncertainty for the franchisee, as the agreement's conditions could change during its term. Franchisees should carefully consider these aspects and seek legal counsel to fully understand the implications of these provisions.