What agreement must the transferee of a Deer Solution franchise and their owners/spouses execute?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
fficers, directors, shareholders, members, partners, agents, representatives, independent contractors, servants, and employees, of any and all claims against Franchisor for matters arising on, or before, the effective date of the Transfer;
- (7) If the proposed Transfer includes or entails the Transfer of this Agreement, substantially all of the assets of the Franchised Business, a controlling interest in Franchisee, or is one of a series of
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.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to the 2025 Deer Solution Franchise Disclosure Document, in the event of a transfer that substantially involves all assets of the franchise or a controlling interest, Deer Solution has the option to require the transferee to execute the then-current standard form Franchise Agreement. This agreement would be for a term ending on the original expiration date and would supersede the existing agreement.
Additionally, the transferee's employees, directors, officers, independent contractors, and agents who will have access to Confidential Information must execute the Confidentiality Agreement attached as Exhibit 2. The Franchise Owner and Spouse Agreement and Guaranty must also be executed.
This means that a potential buyer of a Deer Solution franchise needs to be prepared to enter into a new franchise agreement with terms that may differ from the original agreement, although the Royalty Fee, Advertising Contributions, and other financial obligations should remain the same. They also need to ensure that anyone with access to confidential information signs a confidentiality agreement and that the Franchise Owner and Spouse Agreement and Guaranty is executed.