To what extent will Subarticle 16.A.(4)(f) of the Deer Solution Franchise Agreement be enforced?

According to Deer Solution's 2025 Franchise Disclosure Document, subarticle 16.A.(4)(f) is not explicitly mentioned. However, Article 16 of the Franchise Agreement is amended for North Dakota franchisees. The amendment states, "Provisions requiring North Dakota Franchisees to consent to termination or liquidated damages are not enforceable in North Dakota."

For franchisees in Minnesota and New York, the FDD includes amendments to Articles 14 and 15, ensuring that franchisees retain all rights and causes of action arising from the Minnesota Franchise Act and the New York General Business Law, respectively. These amendments aim to satisfy non-waiver provisions under state laws, providing franchisees with certain termination and non-renewal rights.

Article 4(f) of the Deer Solution Franchise Agreement includes an acknowledgement that the terms of the agreement are reasonable and a waiver of the right to challenge the terms as overly broad, unreasonable, or otherwise unenforceable. However, Deer Solution retains the right to unilaterally modify Article 4 to ensure the terms are enforceable under applicable law. This suggests that while franchisees initially waive their right to challenge the agreement's terms, Deer Solution may adjust these terms to comply with legal requirements, potentially impacting the enforcement of specific subarticles like 16.A.(4)(f). Prospective franchisees should seek clarification on how these modifications might affect their rights and obligations.