Can Deer Solution charge a fee for managing a Deer Solution franchise after the death or disability of the franchisee?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
(1) If Franchisee is an individual and not a Corporate Entity, upon the death or permanent disability of Franchisee, the executor, administrator, conservator, or other personal representative of Franchisee, must appoint a manager that meets the equivalent of an Operating Manager within a reasonable time, which shall not exceed 30 days from the date of death or permanent disability.
The appointed manager (as applicable) must serve and qualify as an Operating Manager and attend and successfully complete the Training Program within 60 days of the appointment.
If Franchisee's Deer Solution Business is not being managed by a Franchisor approved Operating Manager (as applicable) within 30 days after such death or permanent disability, Franchisor is authorized, but is not required, to immediately appoint a manager to maintain the operations of Franchisee's Deer Solution Business for, and on behalf of, Franchisee at Franchisee's sole costs until an approved Operating Manager is able to assume the management and operation of Franchisee's Deer Solution Business.
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.
- (2) If Franchisee is a Corporate Entity, upon the death or permanent disability of Franchisee's Managing Owner, the remaining Owners within a reasonable time, which shall not exceed 30 days from the date of death or permanent disability, must appoint a new Managing Owner that is approved by Franchisor.
The appointed Managing Owner must attend and successfully complete the Training Program within 60 days of the appointment.
If Franchisee's Deer Solution Business is not being managed by a Franchisor approved Managing Owner (as applicable) within 30 days after such death or permanent disability, Franchisor is authorized, but is not required, to immediately appoint a manager to maintain the operations of Franchisee's Deer Solution Business for, and on behalf of, Franchisee at Franchisee's sole costs until an approved Managing Owner is able to assume the management and operation of Franchisee's Deer Solution Business.
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 reasonable fee for such management services and may cease to provide management services at any time.
Notwithstanding the foregoing, if Franchisee is a Corporate Entity and the
Managing Owner is the only Owner of Franchisee, then Article 14.D.(1) shall apply as if the Managing Owner were the sole individual Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, Deer Solution has the right to charge a fee for management services if they appoint a manager to maintain the operations of the Deer Solution business due to the death or permanent disability of the franchisee or the managing owner. This applies whether the franchisee is an individual or a corporate entity. Deer Solution may also cease to provide management services at any time.
For individual franchisees, the executor, administrator, conservator, or other personal representative must appoint a manager that meets the equivalent of an Operating Manager within 30 days of the death or permanent disability. The appointed manager must qualify as an Operating Manager and complete the Training Program within 60 days of appointment. If a Franchisor approved Operating Manager is not managing the Deer Solution Business within 30 days after the death or disability, Deer Solution is authorized to appoint a manager to maintain operations at the franchisee's cost until an approved Operating Manager is in place.
For corporate entity franchisees, upon the death or permanent disability of the Managing Owner, the remaining Owners must appoint a new Managing Owner approved by Deer Solution within 30 days. The appointed Managing Owner must complete the Training Program within 60 days of the appointment. Similar to individual franchisees, if a Franchisor approved Managing Owner is not managing the business within 30 days, Deer Solution can appoint a manager at the franchisee's expense. If the Managing Owner is the only Owner of a corporate entity, the provisions for individual franchisees apply.
It is important to note that Deer Solution's appointment of a manager does not relieve the franchisee of their obligations under the Franchise Agreement, nor does it waive Deer Solution's right to terminate the agreement. The franchisee remains responsible for all debts, losses, costs, and expenses incurred during the operations, even while managed by Deer Solution's appointed manager. While the document states that Deer Solution can charge a "Management Service Fee" or a "reasonable fee", it does not specify how that fee is calculated.