What is the consequence for an owner's spouse if the Deer Solution Franchise Agreement is transferred without the franchisor's consent?

According to Deer Solution's 2025 Franchise Disclosure Document, if a Deer Solution franchise is transferred without the franchisor's approval, the owner's spouse remains liable for all obligations to Deer Solution as outlined in the Franchise Agreement. This is because the spouse is required to sign a 'Franchise Owner and Spouse Agreement and Guaranty,' making them a guarantor of the franchisee's obligations. This agreement ensures that spouses are bound by the terms of the Franchise Agreement.

This means that even if the franchise is transferred to someone else without Deer Solution's consent, the spouse is still responsible for ensuring that all financial and other obligations to Deer Solution are met. This includes, but is not limited to, royalty fees, advertising contributions, and any other fees or payments owed under the agreement. The franchisor can pursue the spouse directly for these amounts if the franchisee fails to pay.

This provision is designed to protect Deer Solution's interests by ensuring that there are multiple parties responsible for the franchisee's obligations. It is a common practice in franchising to require spousal guarantees, as it provides an additional layer of security for the franchisor. Prospective franchisees and their spouses should carefully review the Franchise Owner and Spouse Agreement and Guaranty to understand the full extent of their obligations.