Under what circumstances must I stop using Deer Solution's Confidential Information?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that, at all times, both during the Term of this Agreement and, after its expiration or termination, Franchisee: (a) shall not use the Confidential Information in any business or capacity other than the Deer Solution Business operated by Franchisee; (b) shall maintain the confidentiality of the Confidential Information at all times; (c) shall not make unauthorized copies of documents containing any Confidential Information; (d) shall take such reasonable steps as Franchisor may ask of Franchisee from time to time to prevent unauthorized use or disclosure of the Confidential Information; and (e) shall stop using the Confidential Information immediately upon the expiration, termination or Transfer of this Agreement. Franchisee agrees that the foregoing covenants and obligations shall also apply to: (a) Franchisee's Owners and Spouses and that Franchisee's Owners and Spouses shall each execute and deliver to Franchisor the Franchise Owner and Spouse Agreement and Guaranty in the form attached to this
Agreement as Exhibit 1; and (b) Franchisee's directors, officers, employees and agents where disclosure of the Confidential Information was necessary for the operations of the Franchised Business and where such director, officer, employee and/or agent previously executed and timely delivered to Franchisor the Confidentiality Agreement in the form attached as Exhibit 2.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, as a franchisee, you must immediately stop using the Confidential Information upon the expiration, termination, or transfer of the Franchise Agreement. This obligation extends beyond the initial term of the agreement. Even after the agreement ends, you are prohibited from using the confidential information in any business or capacity other than the Deer Solution Business that you operated as a franchisee.
Confidential Information includes methods, specifications, standards, policies, procedures, information, concepts, programs, systems relating to the development, establishment, marketing, promotion and operation of Deer Solution Businesses. It also includes information concerning customers, customer lists, email lists, database lists, product sales, operating results, financial performance and other financial data of Deer Solution Businesses, Business Management System Data, current and future information contained in the Operations Manual, and Know-How.
This restriction is a standard practice in franchising to protect the franchisor's proprietary information and maintain the integrity of the brand. The agreement also stipulates that the franchisee must take reasonable steps to prevent unauthorized use or disclosure of the confidential information, reinforcing the importance of safeguarding this information both during and after the franchise term. This obligation also applies to the Franchisee's Owners and Spouses and that Franchisee's directors, officers, employees and agents where disclosure of the Confidential Information was necessary for the operations of the Franchised Business and where such director, officer, employee and/or agent previously executed and timely delivered to Franchisor the Confidentiality Agreement.