Does Deer Solution's consent to a transfer waive the right to demand compliance with the agreement by the transferee?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
igations 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;
- (14) Franchisee entering into an agreement with Franchisor agreeing to subordinate any obligations of transferee to make installment payments of the purchase price to Franchisee to the transferee's obligations to Franchisor, including, without limitation, transferee's obligations with respect to Royalty Fees and Advertising Contributions;
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the franchisor's consent to a transfer does not waive their right to demand compliance with the agreement by the transferee. Specifically, even after a transfer is approved, the original franchisee, owners, and spouses remain liable for all obligations to Deer Solution as outlined in the original agreement.
Furthermore, Deer Solution may require the transferee to execute the then-current standard form Franchise Agreement, which would supersede the original agreement. This ensures that the transferee is bound by the most up-to-date terms and conditions set by Deer Solution. The transferee may also be required to improve or upgrade the Administrative Office to meet current standards, and complete any training programs in effect for new franchisees.
In practical terms, this means that a franchisee selling their Deer Solution business remains responsible for any outstanding obligations even after the transfer is complete. The new franchisee (transferee) must also meet Deer Solution's current standards and may be subject to new agreement terms, ensuring continued compliance and brand consistency. This protects Deer Solution's interests and maintains uniformity across its franchise network.