What is the 'Restricted Period' after the Deer Solution franchise relationship ends, during which non-competition restrictions apply?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
"Post-Term Restricted Period" refers to and means the 24 month period after the earliest to occur of the following: (a) the expiration or termination of this Agreement for any reason; or (b) the date on which Franchisee Transfers this Agreement to another person or Corporate Entity. Provided however, that if a court of competent jurisdiction determines that this period of time is too long to be enforceable, then the "Post-Term Restricted Period" means the 18 month period after the earliest to occur of the following: (a) the expiration or termination of this Agreement for any reason; or (b) the date on which Franchisee Transfers this Agreement to another person or Corporate Entity.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the 'Post-Term Restricted Period' is defined as the 24-month period following the expiration or termination of the Franchise Agreement for any reason, or the date the franchisee transfers the agreement to another entity. This means that for two years after the franchise agreement ends, a former Deer Solution franchisee will be subject to certain non-competition restrictions.
However, the FDD also states a caveat: if a court deems the 24-month period too long to be enforceable, the 'Post-Term Restricted Period' will be reduced to 18 months after the agreement's expiration, termination, or transfer. This provision acknowledges that the enforceability of non-compete clauses can vary by jurisdiction, and aims to ensure the restriction is legally sound.
This is a fairly standard non-compete duration in the franchise industry. Prospective Deer Solution franchisees should be aware of these restrictions and consider how they might impact their future business activities if they leave the Deer Solution system. It's important to understand the specific activities and geographic areas restricted during this period, as detailed elsewhere in the FDD, to fully assess the implications.