Can Deer Solution require a franchisee's Business Management System license to be registered to, controlled by, or licensed through the franchisor?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Franchisor reserves the right to modify and designate alternative Business Management Systems as Franchisor determines in Franchisor's Reasonable Business Judgment.
- (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, upon the expiration, termination, or transfer of the Franchise Agreement, the franchisee must take action as may be determined by Deer Solution to provide and assign to Deer Solution the Business Management System and the Business Management System Data. The franchisee must also transfer, disconnect, or assign 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 the franchisee's former Deer Solution Business. The franchisee must also cancel the franchisee's interests in the same as such cancellation may be directed by Deer Solution.
Deer Solution also requires direct live access and storage-based access to the Business Management System for the Franchised Business and to the franchisee's Business Management System Data at all times during the agreement. Deer Solution reserves the right to modify and designate alternative Business Management Systems as Deer Solution determines in its Reasonable Business Judgment.
These stipulations give Deer Solution significant control over the Business Management System and associated data, especially upon termination of the agreement. The franchisee is obligated to transfer the system and data to Deer Solution and comply with Deer Solution's directions regarding cancellation of related accounts and listings. This could create challenges for a former franchisee if they wish to start a similar business after the franchise agreement ends, as they would need to establish a completely new Business Management System and customer database.