What is the deadline for a Deer Solution franchisee to discharge an involuntary bankruptcy petition filed against them to avoid automatic termination?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) Defaults and Automatic Termination After 10 Day Cure Period Franchisee shall be in default of this Agreement and, this Agreement shall be terminated, upon the occurrence of any one or more of the following actions, inactions, omissions, events, and/or circumstances, unless, Franchisee timely cures, to the satisfaction of Franchisor, such default / action, inaction, omission, event, and/or circumstance within 10 calendar days of Franchisor's written notice:
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to the 2025 Deer Solution Franchise Disclosure Document, a franchisee has a 10-day cure period to address certain defaults to avoid termination of the franchise agreement. Specifically, if an involuntary bankruptcy petition is filed against the franchisee, Deer Solution can terminate the agreement unless the franchisee resolves the issue to Deer Solution's satisfaction within 10 calendar days of receiving written notice from the franchisor.
This 10-day cure period is triggered by written notice from Deer Solution, meaning the franchisee must act quickly once they receive this notice. The resolution must be to Deer Solution's satisfaction, which introduces a degree of subjectivity. The franchisee would need to work closely with Deer Solution to ensure the bankruptcy petition is discharged or otherwise resolved in a manner acceptable to them within that short timeframe.
It's important to note that the Maryland FDD Amendment included in the document states that the Franchise Agreement provides for termination upon bankruptcy, but this provision may not be enforceable under federal bankruptcy law. This suggests that federal law might offer additional protections to franchisees facing bankruptcy, potentially overriding the termination clause in the franchise agreement. A prospective franchisee should consult with a legal professional to understand their rights and obligations under both the franchise agreement and federal bankruptcy law.