factual

Does Deer Solution's appointment of a manager relieve the franchisee of their obligations under the Franchise Agreement?

Deer_Solution Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisor's appointment of a manager for Franchisee's Deer Solution Business does not relieve Franchisee of its obligations under this Agreement, including this Article 14.D., or constitute a waiver of Franchisor's right to terminate this Agreement pursuant to Article 16, below.

At all times, including while Franchisee's Deer Solution Business may be managed by Franchisor's appointed manager, Franchisor shall not be liable for any debts, losses, costs, or expenses incurred in the operations of Franchisee's Deer Solution Business or to any creditor of Franchisee for any products, materials, supplies, or services purchased by Franchisee's Deer Solution Business.

Franchisor has the right to charge a Management Service Fee for such management services and may cease to provide management services at any time.

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

What This Means (2025 FDD)

According to Deer Solution's 2025 Franchise Disclosure Document, the appointment of a manager by Deer Solution does not relieve the franchisee of their obligations under the Franchise Agreement. This holds true even if Deer Solution appoints a manager to oversee the Deer Solution business due to the death or permanent disability of the franchisee or the franchisee's managing owner.

Specifically, the FDD states that the franchisee remains responsible for all obligations outlined in the agreement, including those detailed in Article 14.D, and that this appointment does not waive Deer Solution's right to terminate the agreement as per Article 16. This means that even with a manager in place, the franchisee is still accountable for fulfilling the financial, operational, and legal requirements of the franchise agreement.

Furthermore, the FDD clarifies that Deer Solution will not be liable for any debts, losses, costs, or expenses incurred during the operations of the Deer Solution business, even when managed by their appointed manager. Deer Solution also retains the right to charge a management service fee for these services and can discontinue providing them at any time. This arrangement ensures that the franchisee remains ultimately responsible for the business's performance and financial obligations, regardless of who is managing the day-to-day operations.

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.