After termination of a Deer Solution franchise, is the franchisee required to cease using the System Supplies?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
| h. "Cause" defined-non-curable defaults | 16.A.(1), 16.A.(2) | The following are defaults that cannot be cured: three or more instances where you commit a curable default, whether or not you timely cured such default in each instance; you intentionally and knowingly refuse to comply with the terms of the Franchise Agreement, and/or the standards specifications, and/or requirements set forth in the operations manual and/or as communicated to you by us from time to time; you intentionally, knowingly, or negligently operate the Franchised Business in violation of applicable laws, rules, and regulations and, in doing so, create a foreseeable, imminent, and/or immediate threat to the health and safety of others; you abandon the Franchised Business; you or your Owners intentionally made a material statement or omission in questionnaires submitted to us; the data, information, and/or records that you record and/or submit to us are intentionally misleading or false; you transfer or attempt to transfer the Franchised Business or the ownership interests in your franchise company without our approval; you disclose or permit the disclosure of information contained in the operations manual and/or of confidential information; you or your Owners engage in intentionally dishonest or unethical conduct that impacts our System; you and/or your Owners breach and, if such breach is capable of a cure, fail to timely cure another agreement with us including the Owner and Spouse Agreement and Guaranty; you and your Owners and managers fail to complete, to our satisfaction, our initial and on-going training programs; you fail to notify us of the misuse of confidential information and you fail to protect same; you misappropriate or misuse the Licensed Marks; you are deemed insolvent, make an assignment for the benefit of creditors, admit in writing your inability to pay debts; are adjudicated bankrupt, file a voluntary bankruptcy petition or have one filed against you, and/or you acquiesce to the appointment of a trustee or receiver, or a court orders one; execution is levied against the Franchised Business; a final judgment is entered against the Franchised Business and is not satisfied within 30 days; you are dissolved; a lawsuit or action is commenced against the Franchised Business to foreclose on a lien on equipment of the Franchised Business and such action is not dismissed after 60 days; and/or real or personal property used by the Franchised Business is sold or levied by a sheriff or other law enforcement officer; you abandon or fail to continuously own and operate the Franchised Business. |
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| i. | Franchisee's obligations on termination/non-renewal | 6, 17 | You must: pay all sums that you owe to us under the Franchise Agreement and all other agreements with us; cease owning and operating the Franchised Business; cease representing yourself as a franchisee of ours; permanently cease using and/or accessing the System, the Licensed Marks, our confidential information, the operations manual, the Business Management System, the Business Management System Data, and the System Supplies; return the operations manual and all confidential information to us in the original form provided to you and document the destruction of all electronic files related to same; completely de-identify the location and/or facility associated with the Franchised Business; as requested by us, transfer to us all data, telephone listings, digital media, accounts, web listings and websites associated with the Franchised Business; and abide by the post-termination non-competition covenants and restrictions. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–45)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, a franchisee must permanently cease using System Supplies after termination. Specifically, upon termination of the Franchise Agreement, the franchisee is obligated to permanently cease using and/or accessing the System, the Licensed Marks, Deer Solution's confidential information, the operations manual, the Business Management System, the Business Management System Data, and the System Supplies. This obligation is part of a broader set of requirements that a franchisee must adhere to upon the end of their agreement with Deer Solution.
This requirement is standard practice in franchising, as it protects the integrity and uniformity of the Deer Solution brand. By preventing former franchisees from using System Supplies, Deer Solution ensures that these individuals do not continue to benefit from the brand's reputation and established operational methods without being an active member of the franchise system. This helps to maintain quality control and prevents customer confusion, as only current franchisees are authorized to represent and operate under the Deer Solution name and system.
In practical terms, this means that a franchisee who has had their agreement terminated must immediately discontinue the use of any materials, products, or resources that are considered part of the Deer Solution System Supplies. Failure to comply with this requirement could result in legal action by Deer Solution to protect its intellectual property and brand standards. Franchisees should carefully review the terms of the Franchise Agreement to fully understand their obligations upon termination to avoid any potential disputes or penalties.