Under what circumstances is a Deer Solution franchisee required to license an improvement to the franchisor?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that with regard to the Franchised Business all customer lists and their contents and information represent Confidential Information and constitute an asset of Franchisor whether or not such information was supplied by Franchisor. During the Term of this Agreement and in connection with the development, establishment, marketing, promotion and operation of the Franchised Business, Franchisee shall disclose to Franchisor all of Franchisee's ideas, concepts, methods, and products conceived or developed by Franchisee and Franchisee's affiliates, Owners, agents, and employees relating to the development and operation of Deer Solution Businesses. Franchisee hereby assigns to Franchisor and Franchisee agrees to procure from Franchisee's Owners, affiliates and employees assignment of any such ideas, concepts, methods, and products that Franchisee is required to disclose to Franchisor under this Article 6.I. Franchisor shall have no obligation to make any lump sum or on-going payments to Franchisee or Franchisee's Owners, affiliates, or employees with respect to any such idea, concept, method, technique or product. Franchisee agrees that Franchisee will not use nor will Franchisee allow any other person or entity to use any such concept, method, or product without obtaining Franchisor's prior written approval.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, a franchisee is required to disclose and assign to Deer Solution any ideas, concepts, methods, and products conceived or developed by the franchisee, their affiliates, owners, agents, and employees related to the development and operation of Deer Solution businesses. This obligation extends to procuring assignments from the franchisee's owners, affiliates, and employees for these innovations.
Deer Solution is not obligated to provide any lump sum or ongoing payments to the franchisee or their associated parties for these ideas, concepts, methods, techniques, or products. The franchisee is prohibited from using or allowing others to use any such concept, method, or product without obtaining Deer Solution's prior written approval.
This clause ensures that any improvements or innovations developed within the Deer Solution franchise network become the property of the franchisor, allowing Deer Solution to maintain consistent standards and benefit from advancements made by its franchisees. It is a fairly standard practice in franchising to ensure the franchisor can incorporate successful innovations across the entire system. However, franchisees should be aware that they will not receive additional compensation for these contributions.