What criteria must a proposed transferee meet to be approved by Deer Solution?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Provided Franchisee and each Owner and Spouse, respectively, are in substantial compliance with this Agreement and the Ancillary Agreements, and Franchisor does not elect to exercise Franchisor's right of first refusal as set forth in Article 14.F. below, Franchisor shall not unreasonably withhold its approval of a Transfer by Franchisee or an Owner. The proposed transferee (including such assignee's owner(s) and spouse(s) if the proposed transferee is a Corporate Entity) must be of good moral character, have sufficient business experience, aptitude, and financial resources to own and operate a Deer Solution Business, and otherwise meet Franchisor's then applicable standards for franchisees as determined by Franchisor in its sole, but reasonable discretion. Furthermore, the proposed transferee and the proposed transferee's owners and spouses may not own or operate, or intend to own or operate, a Competitive Business. Franchisee agrees that Franchisor may condition approval of a Transfer upon Franchisee's satisfaction (either before, or contemporaneously with, the effective date of the Transfer) of the following:
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, a proposed transferee must meet several criteria to be approved. The transferee must be of good moral character and possess sufficient business experience, aptitude, and financial resources to successfully own and operate a Deer Solution Business. Additionally, the transferee must meet Deer Solution's then-current standards for franchisees, as determined reasonably by Deer Solution.
Furthermore, the proposed transferee, along with their owners and spouses, cannot own or operate, nor intend to own or operate, a Competitive Business. This restriction ensures that the transferee's focus remains solely on the Deer Solution franchise and prevents any potential conflicts of interest.
Deer Solution also retains the right to condition the approval of a transfer based on certain requirements being met. These conditions may include the transferee improving the Administrative Office to meet current standards, completing required training programs, and executing a confidentiality agreement. The transferee must also demonstrate that the financial terms of the transfer are not detrimental to the future operations of the Deer Solution business. These stipulations are designed to protect the Deer Solution brand and ensure the continued success of the franchise under new ownership.