factual

What fee must the franchisee pay to the franchisor during a Deer Solution franchise transfer?

Deer_Solution Franchise · 2025 FDD

Answer from 2025 FDD Document

"Transfer Fee" shall mean a fixed sum that equals 50% of the then current franchise fee.

  • (11) Franchisee must pay the Transfer Fee to Franchisor;

Transfer fees are collectable to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.

Source: Item 23 — RECEIPTS (FDD pages 55–246)

What This Means (2025 FDD)

According to Deer Solution's 2025 Franchise Disclosure Document, a franchisee must pay a transfer fee to the franchisor when transferring their franchise. This transfer fee is a fixed sum that equals 50% of the then-current franchise fee.

This means that if a franchisee decides to sell their Deer Solution franchise to another party, they will be required to pay Deer Solution a fee equivalent to half of what a new franchisee would currently pay to start a franchise. This fee is intended to cover Deer Solution's costs associated with processing the transfer, such as reviewing the transferee's qualifications and updating the franchise agreement.

It is important for prospective franchisees to understand this fee, as it can significantly impact the profitability of selling their franchise. Franchisees should factor this cost into their decision-making process when considering a transfer. Additionally, the FDD states that transfer fees are collected to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.