Does Deer Solution act as a co-signer for franchisee loans?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must not employ any Licensed Mark in signing any contract, lease, mortgage, check, purchase agreement, negotiable instrument, or other legal obligation. Franchisee must not employ any Licensed Mark in a manner that is likely to result in liability of Franchisor for any indebtedness, action, inaction, or obligation of Franchisee.
Franchisor and Franchisee shall not make any express or implied agreements, guaranties, or representations, or incur any debt, in the name, or on behalf, of the other. Franchisor and Franchisee shall not represent that their relationship is anything other than franchisor and franchisee. Franchisor and Franchisee shall not be obligated by, or have any liability under, any agreements or representations made by the other that are not expressly authorized. Franchisor shall not be obligated for any damages to any person or property directly or indirectly arising out of the operation of the Franchised Business, whether or not caused by Franchisee's negligent, willful act or failure to act.
Source: Item 10 — FINANCING (FDD page 28)
What This Means (2025 FDD)
The 2025 Deer Solution Franchise Disclosure Document states that Deer Solution and its franchisees are independent parties. Deer Solution will not make any agreements or incur any debt on behalf of the franchisee. The franchisee must not employ any licensed mark in signing any contract, lease, mortgage, check, purchase agreement, negotiable instrument, or other legal obligation. The franchisee must not employ any Licensed Mark in a manner that is likely to result in liability of Franchisor for any indebtedness, action, inaction, or obligation of Franchisee.
According to the FDD, Deer Solution and the franchisee shall not make any express or implied agreements, guarantees, or representations, or incur any debt, in the name, or on behalf, of the other. Deer Solution and the franchisee shall not represent that their relationship is anything other than franchisor and franchisee.
This means that as a prospective Deer Solution franchisee, you cannot expect Deer Solution to act as a co-signer for any loans you may need to secure to finance your franchise. You are solely responsible for all financial obligations related to your Deer Solution franchise. This is a common arrangement in franchising, as franchisees are typically considered independent business owners.