What agreement might a Deer Solution franchisee enter into regarding the transferee's payment obligations?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Transfers which in the aggregate Transfers substantially all of the assets of the Franchised Business or a controlling interest in Franchisee, then, at the election of Franchisor and upon notice from Franchisor to Franchisee, the transferee may be required to execute (and/or, upon Franchisor's request, shall cause all interested parties to execute) for a term ending on the expiration date of the original Term of this Agreement, the then current standard form Franchise Agreement offered to new franchisees of Deer Solution Businesses and any other agreements as Franchisor requires. Such agreements shall supersede this Agreement and its associated agreement in all respects, and the terms of Franchisor's then current agreements may differ from the terms in this Agreement, provided that such agreements shall provide for the same Royalty Fee, Advertising Contributions, and all other financial or monetary obligations established in this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, if a franchisee transfers a substantial portion of their assets or a controlling interest in their franchise, the transferee may be required to execute agreements related to payment obligations. Specifically, Deer Solution has the option to require the transferee to sign the then-current standard form Franchise Agreement, along with any other agreements Deer Solution deems necessary. This new agreement would be for a term ending on the original expiration date of the initial franchise agreement.
This new agreement would supersede the original agreement. While the terms in Deer Solution's current agreements may differ, the new agreement must maintain the same Royalty Fee, Advertising Contributions, and all other financial or monetary obligations as the original agreement. This ensures that Deer Solution's revenue streams remain consistent even with a change in franchisee ownership.
This requirement protects Deer Solution by ensuring that a new owner is bound by the current standards and obligations of the franchise system. For a prospective franchisee, this means that if they plan to sell their Deer Solution business, the potential buyer must be willing to adhere to the financial terms of the existing franchise agreement or potentially the then-current agreement, which could include upgrades or modifications to the administrative office at the transferee's expense to meet Deer Solution's current standards.