factual

What articles in the Deer Solution franchise agreement address the individual guarantee of franchise obligations?

Deer_Solution Franchise · 2025 FDD

Answer 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.

Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD page 28)

What This Means (2025 FDD)

According to the 2025 Deer Solution Franchise Disclosure Document, the franchise agreement requires personal guarantees from the franchisee and their spouse. Item 15 of the Franchise Agreement states that the franchisee and, if the franchisee is a corporation, each of its members, shareholders, and/or partners (collectively, "Owners"), must personally guarantee all of the franchisee's obligations to Deer Solution under the Franchise Agreement. Each Owner and Owner's spouse must also personally guarantee the obligations.

Deer Solution includes a "Franchise Owner and Spouse Agreement and Guaranty" as Exhibit 1 to the agreement. This agreement is entered into individually, jointly, and severally by the Owners and Spouses of the Franchisee. By signing this agreement, the franchisee acknowledges that they are personally obligated to guarantee the franchisee's obligations to Deer Solution, including brand protection, confidentiality, and noncompetition restrictions.

These guarantees are a critical component of the franchise agreement, as Deer Solution relies on them to enter into the agreement with the franchisee. This means that the personal assets of the franchisee and their spouse could be at risk if the Deer Solution franchise fails to meet its financial or contractual obligations. This is a fairly standard practice in franchising, as it provides the franchisor with additional security and recourse in case of default.

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.