factual

Does the acceptance of partial payment from the franchisee affect the personal guaranty for a Deer Solution franchise?

Deer_Solution Franchise · 2025 FDD

Answer from 2025 FDD Document

the following schedule is complete and accurately identifies Franchisee's Owners, Franchisee's Managing Owner, and their respective ownership interests in Franchisee. Defined terms shall have the meanings set forth in the Franchise Agreement between Franchisor and Franchisee.

Owner Name Owner Address Ownership Interest Percentage Name of designated Managing Owner: Dated: Deer Solution Franchising LLC Name and Title Name (please print) Name (please print)

Franchise Agreement – Exhibit 1

Franchise Owner and Spouse Agreement and Guaranty

FRANCHISE OWNER AND SPOUSE AGREEMENT AND GUARANTY

This Franchise Owner and Spouse Agreement and Individual Guaranty (the "Agreement") is individually entered into by you as either an owner of ____________________________ (hereinafter referred to as "Franchisee"), Franchisee, or the spouse of the owner of franchisee and is given and signed by you in favor of Deer Solution Franchising LLC, franchisor of the Deer Solution franchise system and in favor of Deer Solution Franchising LLC's successors and assigns, upon the terms and conditions set forth in this Agreement. In this Agreement Deer Solution Franchising LLC is referred to as "us", "our" or "we", and each individual that signs this Agreement is referred to as "you".

Recitals and Representations

WHEREAS, you acknowledge and agree that we have developed a distinctive and proprietary system (the "System") for the establishment, development and operation of a business that offers, sells, and provides all natural deer repellent services and deer damage control for residential and commercial landscapes, and other products and services that we authorize (the "Approved Services and Products") under the Licensed Marks (defined below) (each, a "Deer Solution Business");

WHEREAS, Franchisee has entered into a Deer Solution Business Franchise Agreement (the "Franchise Agreement") for the ownership, development, and operation of a Deer Solution Business (the "Franchised Business");

WHEREAS, you have received and have thoroughly reviewed the completed Franchise Agreement, including Schedules and Exhibits attached to the Franchise Agreement;

WHEREAS, we have recommended that you thoroughly review the Franchise Agreement, this Agreement and all exhibits and schedules to the Franchise Agreement with a lawyer selected and hired by you;

WHEREAS, you represent to us that you are either: (a) an Owner of Franchisee such that you own or control a legal, equitable or beneficial ownership or equity interest in Franchisee and/or otherwise meet the definition of an "Owner" as set forth in this Agreement; and/or (b) the "Spouse" of an Owner of Franchisee;

Source: Item 23 — RECEIPTS (FDD pages 55–246)

What This Means (2025 FDD)

Based on the 2025 Deer Solution Franchise Disclosure Document, the Franchise Owner and Spouse Agreement and Guaranty is a legally binding agreement that each individual signs in favor of Deer Solution Franchising LLC. This agreement is entered into by the owner of the franchisee, the franchisee itself, or the spouse of the owner. It outlines the terms and conditions under which the personal guaranty is provided.

The FDD states that the franchisee shall not, on grounds of alleged nonperformance, material breach, or default by Deer Solution, withhold any payment, fee, or any other amount payable to Deer Solution. This includes, but is not limited to, royalty fees and advertising contributions. The franchisee does not have the right to offset or withhold any liquidated or unliquidated amount allegedly due to the franchisee from Deer Solution against any payment, fee, or any other amount payable to Deer Solution.

While the FDD specifies that franchisees and their spouses may be required to sign a personal guarantee, the document does not explicitly address whether Deer Solution's acceptance of a partial payment from the franchisee affects the personal guaranty. A prospective franchisee should seek clarification from Deer Solution regarding the specific terms of the personal guaranty and how partial payments are treated in relation to it. It would be prudent to consult with a legal advisor to fully understand the implications of the personal guaranty before signing the agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.