What are Deer Solution's Reserved Rights regarding operating Deer Solution Businesses outside of a franchisee's Operating Territory?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
We and our affiliates reserve to ourselves the exclusive right on any and all terms and conditions that we deem advisable and, without any compensation or consideration to you (Franchise Agreement, Article 2.D.), to engage in the following activities (our "Reserved Rights"): (a) operate and grant to others the right to develop and operate Deer Solution Businesses using the System and Licensed Marks outside your Operating Territory, as we deem appropriate and irrespective of the proximity to your Operating Territory; (b) acquire, merge with or otherwise affiliate with one or more businesses of any kind, including businesses that offer and sell products and services that are the same as, or similar to, your Deer Solution Business, and after such acquisition, merger or affiliation to own and operate and to franchise, or license others to own and operate and to continue to own and operate such businesses of any kind, even if such businesses offer and sell products and services that are the same as or similar to a the Franchised Business (but not utilizing the Licensed Marks) within your Operating Territory; (c) be acquired by or merge with or otherwise affiliate with one or more businesses of any kind, including businesses that offer and sell products and services that are the same as or similar to the Franchised Business, even if such business or businesses presently or, in the future, own and operate and franchise or license others to own and operate businesses that offer and sell products and services that are the same as or similar to your Deer Solution Business (but not utilizing the Licensed Marks) within your Operating Territory; (d) use the Licensed Marks and System to distribute the Approved Services and Products offered and sold by the Franchised Business or products and services similar to the Approved Services and Products offered and sold by the Franchised Business in alternative channels of distribution including the internet, catalog sales, telemarketing, or other direct marketing sales (referred to as "Alternative Channels of Distribution") within or outside your Operating Territory; (e) use the Licensed Marks and System to distribute the Approved Services and Products offered and sold by the Franchised Business or services and products similar to the Approved Services and Products offered and sold by the Franchised Business in captive market sites including, but not limited to, nontraditional locations such as malls, transportation centers and limited access venues, within or outside your Operating Territory (referred to as "Closed Markets"); (f) use the Licensed Marks and System to offer, sell, and provide the Approved Services and Products offered and sold by the Franchised Business or products and services similar to the Approved Services and Products offered and sold by the Franchised Business on behalf of customers of local, regional, and/or national corporate accounts (referred to as "Corporate Accounts") within or outside your Operating Territory; and (g) use the Licensed Marks and System and to license others to use the Licensed Marks and System, to engage in all other activities not expressly prohibited by the Franchise Agreement.
Source: Item 12 — TERRITORY (FDD pages 35–37)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, Deer Solution retains specific rights regarding the operation of Deer Solution businesses outside a franchisee's designated Operating Territory. These rights, termed "Reserved Rights," allow Deer Solution and its affiliates to operate and grant others the right to develop and operate Deer Solution businesses using the Deer Solution system and licensed marks outside a franchisee's Operating Territory. This can be done on any terms and conditions Deer Solution deems advisable, without providing any compensation or consideration to the franchisee. Deer Solution can exercise these rights irrespective of the proximity to a franchisee's Operating Territory.
This reservation of rights means that a Deer Solution franchisee's territory is not exclusive in the sense that Deer Solution itself can establish or authorize other franchisees to establish Deer Solution businesses nearby. This could potentially lead to competition for customers and market share, even if the franchisee is meeting all obligations under their agreement.
Furthermore, Deer Solution also reserves the right to engage in alternative channels of distribution, closed market sites, and corporate accounts both within and outside of a franchisee's territory. These include internet sales, catalog sales, telemarketing, sales in malls or transportation centers, and servicing national corporate accounts. Deer Solution can also affiliate with other businesses, even those that offer similar services, as long as they do not use the Deer Solution Licensed Marks. These activities can occur without any compensation to the franchisee. A prospective franchisee should carefully consider the implications of these reserved rights, as they could significantly impact the potential market and revenue within their Operating Territory.