Does the table address any edge cases related to Deer Solution's operating activities?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
customers outside of Franchisee's Operating Territory or, within the Operating Territory of another Deer Solution Business, (ii) does not otherwise violate the restrictions set forth in Article 9.F of this Agreement, and (iii) in each instance Franchisee provides Franchisor with an Out of Territory Service Request that, in writing, is approved by Franchisor, Franchisee's Deer Solution Business may, on a non-exclusive basis, provide an Approved Services and Products to a customer within an Open Area. Franchisee must obtain Franchisor's approval in each and every instance and Franchisor may, in Franchisor's Reasonable Business Judgment, reject or disapprove of Franchisee's Out of Territory Service Request; and
(3) Once an Open Area becomes an Assigned Area, Franchisee shall cease communicating with customers previously serviced by Franchisee in the Open Area and Franchisee shall turnover to Franchisor, for the benefit of Franchisor, or another Deer Solution Business, all information and records related to the Approved Services and Products provided within the Open Area.
Nothing contained in this Article 3.J. shall expand either the non-exclusive franchise rights granted to franchisee in Article 2 of this Agreement or, Franchisee's Operating Territory and, in the event of any inconsistency or conflict between the terms of this Article 3.J. and Article 2, Article 2 shall take precedence and govern.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
The 2025 Deer Solution Franchise Disclosure Document does address some edge cases related to operating activities, specifically concerning providing services outside of a franchisee's designated territory. It outlines the conditions under which a franchisee can offer services in an open area, which is defined as an area not yet assigned to another franchisee.
According to the FDD, a Deer Solution franchisee may provide approved services and products to customers outside their territory, but only in an open area. This is allowed if it doesn't violate the restrictions in Article 9.F of the agreement and if the franchisee obtains written approval from Deer Solution Franchising LLC through an Out of Territory Service Request. The franchisor retains the right to reject such requests based on their reasonable business judgment.
Furthermore, the FDD states that once an open area becomes an assigned territory, the franchisee who previously serviced customers in that area must cease communication with those customers. All information and records related to the services provided in the now-assigned area must be turned over to Deer Solution Franchising LLC or another designated Deer Solution business. This ensures a smooth transition and protects the interests of the new franchisee assigned to that territory. This exception does not expand the franchisee's rights and Article 2 of the agreement takes precedence.