Does the Deer Solution agreement require arbitration for disputes related to the validity of the Ancillary Agreements?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
defined and set forth in Article 9.G. of this Agreement.
- "Alternative Channels of Distribution" refers to and means retail and/or wholesale based sales and/or distribution outlets based on the world wide web, print catalogs, and mail order outlets.
- "Ancillary Agreements" refers to and means, individually and collectively, each and every agreement between: (a) Franchisor and Franchisee but, not including this Agreement; (b) Franchisor and each of Franchisee's Owners, whether individually and/or collectively; and (c) Franchisor and each Spouse of Franchisee's Owners, whether individually and/or collectively. Without limitation to the foregoing, the term Ancillary Agreements includes the Franchise Owner and Spouse Agreement and Guaranty, Lease Agreement Rider, Collateral Assignment of Lease and the Assignment of Telephone Numbers and Digital Media Accounts, as said agreements, individually and/or collectively, may have been entered into between the foregoing parties.
- "Annual Conference Attendance Fee" refers to and means an annual conference fee to be paid by Franchisee to Franchisor in an amount determined by Franchisor but not to exceed $1,500 annually.
- "Annual System Conference" refers to and means a conference that may be established and organized by Franchisor for the purpose of facilitating networking among Deer Solution Business franchisees, and general education. Franchisor shall designate and determine whether or not an Annual System Conference shall occur and, if one is established in any particular year, the dates, content, and location of the Annual System Conference. The Annual System Conference shall be for a duration of not more than three consecutive days per calendar year. Franchisee is responsible for all costs and expenses associated with Franchisee's travel to and attendance at the Annual System Conference.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
Based on the 2025 Deer Solution Franchise Disclosure Document, the term "Ancillary Agreements" refers to agreements between Deer Solution and the franchisee, the franchisee's owners, and their spouses, excluding the Franchise Agreement itself. These agreements can include the Franchise Owner and Spouse Agreement and Guaranty, Lease Agreement Rider, Collateral Assignment of Lease, and the Assignment of Telephone Numbers and Digital Media Accounts.
The Deer Solution Franchise Agreement includes a provision that disputes are resolved through arbitration. However, this provision is subject to certain state laws that may limit its enforceability. For example, a Maryland franchise regulation states that requiring a franchisee to waive their right to file a lawsuit in Maryland claiming a violation of the Maryland Franchise Law is an unfair or deceptive practice. Similarly, North Dakota law stipulates that the site of arbitration or mediation must be agreeable to all parties and not remote from the franchisee's place of business. Additionally, any provision requiring the Franchise Agreement to be construed according to the laws of a state other than North Dakota is considered unfair under North Dakota law.
Amendments to the Deer Solution Franchise Agreement in several states, including Maryland, Rhode Island, Virginia, Washington, Minnesota, and New York, include provisions that may affect the enforceability of arbitration clauses or other terms of the agreement. These amendments generally aim to protect franchisees' rights under state franchise laws and prevent them from waiving claims or being subjected to unfair or unjust terms. Therefore, while the Deer Solution agreement generally mandates arbitration, its application to disputes specifically concerning the validity of Ancillary Agreements may be subject to the specific stipulations and protections afforded by state laws.
Prospective franchisees should consult with a legal professional to understand how these state-specific amendments and regulations may impact their rights and obligations under the Deer Solution Franchise Agreement and any Ancillary Agreements.