Does a Deer Solution franchisee have a cure period for defaults leading to automatic termination?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
ents of default that are otherwise governed by and/or constitute events of default under Article 16.A.(1) or Article 16.A.(2). In the event of any inconsistency or conflict between the provisions of this Article 16.A.(3) with Article 16.A.(1), Article 16.A.(1) shall take precedence and govern. In the event of any inconsistency or conflict between the provisions of this Article 16.A.(3) with Article 16.A.(2), Article 16.A.(2) shall take precedence and govern.
(4) Defaults and Automatic Termination After 30 Day Cure Period – Franchisee shall be in default of this Agreement and, this Agreement shall be terminated, upon the occurrence of any one or more of the following actions, inactions, omissions, events, and/or circumstances, unless, Franchisee timely cures, to the satisfaction of Franchisor, such default / action, inaction, omission, event, and/or circumstance within 30 calendar days of Franchisor's written notice:
- (a) Franchisee fails or refuses to comply with and/or breaches any term, condition, provision, and/or requirement of this Agreement that is not otherwise a default under Articles 16.A.(1), 16.A.(2), or 16.A.(3) of this Agreement;
- (b) Franchisee fails or refuses to comply with and/or breaches any term, condition, provision, and/or requirement of any agreement, other than this Agreement, between Franchisor and Franchisee, and/or an affiliate of Franchisor and Franchisee;
- (c) Franchisee fails or refuses, in accordance with the terms of this Agreement, to obtain and secure a signed lease agreement or fee simple ownership interest in an approved location for Franchisee's Administrative Office;
- (d) Franchisee fails or refuses to develop and open the Franchised Business on or before the Scheduled Business Commencement Date, in compliance with the terms of this Agreement, as designated or specified in the Operations Manual, and/or in accordance with Franchisor's standards and specifications as communicated to Franchisee from time to time;
- (e) Franchisee fails or refuses, at any time, to manage, maintain, and/or operate the Franchised Business in compliance with the terms of this Agreement, as designated or specified in the Operations Manual, and/or in accordance with Franchisor's standards, specifications, and requirements as communicated to Franchisee from time to time;
- (f) Franchisee fails or refuses, at any time, to develop, manage, maintain, and/or operate the Franchised Business in compliance with all applicable federal, state, and local laws, rules, regulations, ordinances, permits, and codes;
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to the 2025 Deer Solution Franchise Disclosure Document, a franchisee may have a cure period to remedy certain defaults that could lead to the termination of their franchise agreement. Specifically, there are two types of defaults that allow for a cure period.
The first type of default allows for a 30-day cure period. If a Deer Solution franchisee fails to comply with any term, condition, provision, or requirement of the agreement (excluding defaults specified in Articles 16.A.(1), 16.A.(2), or 16.A.(3)), breaches any agreement with the franchisor, fails to secure a lease for their administrative office, fails to open the franchised business by the scheduled commencement date, fails to properly manage the business, or fails to comply with applicable laws, they have 30 calendar days from written notice to correct the issue.
The second type of default allows for a 10-day cure period. The FDD excerpt does not list the specific defaults that fall under the 10-day cure period. A prospective franchisee should review the full FDD and ask the franchisor for clarification on what specific defaults trigger the 10-day cure period versus the 30-day cure period.