Who determines the terms of the Renewal Franchise Agreement and Renewal Ancillary Agreements for Deer Solution franchisees?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Transfers which in the aggregate Transfers substantially all of the assets of the Franchised Business or a controlling interest in Franchisee, then, at the election of Franchisor and upon notice from Franchisor to Franchisee, the transferee may be required to execute (and/or, upon Franchisor's request, shall cause all interested parties to execute) for a term ending on the expiration date of the original Term of this Agreement, the then current standard form Franchise Agreement offered to new franchisees of Deer Solution Businesses and any other agreements as Franchisor requires. Such agreements shall supersede this Agreement and its associated agreement in all respects, and the terms of Franchisor's then current agreements may differ from the terms in this Agreement, provided that such agreements shall provide for the same Royalty Fee, Advertising Contributions, and all other financial or monetary obligations established in this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
Based on the 2025 Deer Solution Franchise Disclosure Document, the terms of the renewal franchise agreement are determined by Deer Solution Franchising LLC. Specifically, if a franchisee transfers their business, Deer Solution has the option to require the transferee to execute the then-current standard Franchise Agreement offered to new franchisees.
According to the FDD, these new agreements will supersede the original agreement in all respects. The terms in Deer Solution's current agreements may differ from the original agreement. However, the new agreements must provide for the same Royalty Fee, Advertising Contributions, and all other financial or monetary obligations that were established in the original agreement.
This means that while some terms might change upon renewal due to a transfer, the core financial obligations should remain consistent with what the original franchisee agreed to. A potential franchisee should carefully consider this when planning for the long-term operation and potential transfer of their Deer Solution franchise.