In a Deer Solution franchise transfer, who is responsible for upgrading the Administrative Office to current standards?
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;
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, in the event of a franchise transfer, the transferee is responsible for upgrading the Administrative Office to meet the franchisor's current standards. Specifically, the transferee must handle all expenses related to improving, modifying, refurbishing, renovating, remodeling, and/or otherwise upgrading the Administrative Office to conform to Deer Solution's standards and specifications at the time of the transfer. These upgrades must be completed within a timeframe that Deer Solution reasonably specifies.
This requirement ensures that the Deer Solution franchise maintains a consistent brand image and operational standard, even when ownership changes. The transferee's willingness to invest in these upgrades demonstrates their commitment to upholding the brand's quality and standards. This also protects Deer Solution's brand reputation and customer experience.
Prospective franchisees should be aware of this potential cost when considering a franchise transfer, as it can represent a significant investment in addition to the transfer fee and other associated expenses. It is important to understand the scope of required upgrades and factor these costs into the financial planning for the franchise. The transferee should communicate with Deer Solution to fully understand the current standards and specifications for the Administrative Office to accurately estimate the costs involved.