Which articles in the Deer Solution agreement address the individual guarantee of franchise obligations?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
You and, if you are Corporate Entity, each of your members, shareholders and/or partners (collectively, "Owners"), must personally guarantee all of your obligations to us under the Franchise Agreement. Each Owner and Owner's spouse must personally guarantee your obligations to us under the Franchise Agreement. You and each Owner and spouse shall promise in writing that, among other things, during the term of the Franchise Agreement you will not participate in any business that in any way competes with the Franchised Business, and that for 24 months after the expiration of termination of the Franchise Agreement (with said period being tolled during any periods of non-compliance), you will not participate in any competitive business located within and/or servicing customers located within your Operating Territory and a 25 mile radius surrounding your Operating Territory. Further you will not participate in any competitive business located within and/or servicing customers located within a 25 mile radius of any other Deer Solution Business and/or the operating territory of any other Franchised Business. Your managers and all other employees and agents with access to our confidential information will be required to sign a confidentiality agreement.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD page 28)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, Item 15 discusses the individual guarantee of franchise obligations. It states that if the franchisee is a corporate entity, each member, shareholder, and/or partner (collectively, "Owners"), must personally guarantee all obligations to Deer Solution under the Franchise Agreement. This extends to each Owner's spouse as well.
The document further specifies that these individuals must agree in writing not to participate in any competing business during the term of the Franchise Agreement. After the agreement expires or terminates, they are restricted from participating in a competitive business within the Operating Territory and a 25-mile radius for 24 months, with this period being tolled during any non-compliance. This non-compete clause also applies within a 25-mile radius of any other Deer Solution Business or its operating territory.
Additionally, Item 23 defines the "Franchise Owner and Spouse Agreement and Guaranty" as an agreement individually, jointly, and severally entered into by the Owners and Spouses of Franchisee. This agreement is attached to the Franchise Agreement as Exhibit 1. The FDD also includes recitals and representations where the individual signing the agreement acknowledges that they are either an Owner or the Spouse of an Owner, and that the agreement personally obligates them to guarantee the franchisee's obligations, as well as adhere to brand protection, confidentiality, and noncompetition restrictions. Deer Solution states that it relies on this agreement and would not enter into the Franchise Agreement without it.