In a Deer Solution franchise transfer, who must assume all obligations of the franchisee under the Franchise Agreement and Ancillary Agreements?
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;
(8) The transferee, at its expense, must improve, modify, refurbish, renovate, remodel, and/or otherwise upgrade Franchisee's Administrative Office to conform to the then current standards and specifications of Franchisor, and the transferee must complete such improvements, modifications, refurbishments, renovations, remodeling, and/or upgrading within the time period Franchisor reasonably specifies;
(9) Franchisee, each Owner, and each Spouse shall remain liable for all obligations to Franchisor set forth in this Agreement;
(10) At the transferee's expense, the transferee, and the transferee's Managing Owner, managers and/or any other applicable employees of transferee's Deer Solution Business must complete any training programs then in effect for franchisees of Deer Solution Businesses upon terms and conditions set forth in this Agreement or as Franchisor otherwise reasonably requires;
(11) Franchisee must pay the Transfer Fee to Franchisor;
(12) Franchisor's approval of the material terms and conditions of the Transfer, and Franchisor determines in Franchisor's Reasonable Business Judgment that the price and terms of payment are not so burdensome as to be detrimental to the future operations of the Franchised Business by the transferee;
(13) Transferee's employees, directors, officers, independent contractors, and agents who will have access to Confidential Information shall execute the Confidentiality Agreement attached hereto as Exhibit 2;
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to the 2025 Deer Solution Franchise Disclosure Document, in the event of a transfer that substantially involves all assets of the franchised business or a controlling interest in the franchisee, Deer Solution has the option to require the transferee to execute the then-current standard form Franchise Agreement and any other agreements Deer Solution requires. These agreements will be for a term ending on the original expiration date and will supersede the existing agreement.
While the terms in the new agreements may differ, they must maintain the same Royalty Fee, Advertising Contributions, and all other financial or monetary obligations as the original agreement. The transferee is also responsible for upgrading the administrative office to meet Deer Solution's current standards within a timeframe specified by Deer Solution. Additionally, the transferee and their Managing Owner and employees must complete any training programs in effect for franchisees. The franchisee is also responsible for paying a transfer fee to Deer Solution.
It is important to note that even with a transfer, the original franchisee, owners, and spouses remain liable for all obligations to Deer Solution as outlined in the original agreement. The transferee's employees who access confidential information must also execute a Confidentiality Agreement. Deer Solution's approval of the transfer is contingent on the price and terms of payment being reasonable and not detrimental to the future operations of the franchised business by the transferee.