Who must assume the obligations under the Deer Solution franchise agreement upon transfer?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
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. Such agreements shall supersede this Agreement and its associated agreement in all respects, and the terms of Franchisor's then current agreements may differ from the terms in this Agreement, provided that such agreements shall provide for the same Royalty Fee, Advertising Contributions, and all other financial or monetary obligations established in this Agreement;
(8) The transferee, at its expense, must improve, modify, refurbish, renovate, remodel, and/or otherwise upgrade Franchisee's Administrative Office to conform to the then current standards and specifications of Franchisor, and the transferee must complete such improvements, modifications, refurbishments, renovations, remodeling, and/or upgrading within the time period Franchisor reasonably specifies;
(9) Franchisee, each Owner, and each Spouse shall remain liable for all obligations to Franchisor set forth in this Agreement;
(10) At the transferee's expense, the transferee, and the transferee's Managing Owner, managers and/or any other applicable employees of transferee's Deer Solution Business must complete any training programs then in effect for franchisees of Deer Solution Businesses upon terms and conditions set forth in this Agreement or as Franchisor otherwise reasonably requires;
(11) Franchisee must pay the Transfer Fee to Franchisor;
(12) Franchisor's approval of the material terms and conditions of the Transfer, and Franchisor determines in Franchisor's Reasonable Business Judgment that the price and terms of payment are not so burdensome as to be detrimental to the future operations of the Franchised Business by the transferee;
(13) Transferee's employees, directors, officers, independent contractors, and agents who will have access to Confidential Information shall execute the Confidentiality Agreement attached hereto as Exhibit 2;
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, if a franchisee transfers substantially all of the assets of their franchised business or a controlling interest in the franchise, the transferee may be required to assume the obligations under the franchise agreement. This is contingent on Deer Solution's election and notice to the franchisee.
Upon Deer Solution's request, the transferee must execute the then-current standard form franchise agreement for new franchisees, along with any other required agreements, for a term ending on the original agreement's expiration date. These new agreements would supersede the original agreement. While the terms may differ, the new agreements must maintain the same Royalty Fee, Advertising Contributions, and all other financial or monetary obligations as the original agreement.
Additionally, the transferee is responsible for upgrading the administrative office to meet Deer Solution's current standards within a specified timeframe. The transferee and their employees must also complete any required training programs. The original franchisee remains liable for all obligations to Deer Solution, and the transferee must ensure employees with access to confidential information execute a Confidentiality Agreement. The transferee must also get Deer Solution's approval on the transfer's material terms and conditions, ensuring the price and payment terms are not detrimental to the business's future operations.