Are a Deer Solution franchisee's owners liable for the franchisee's obligations under the Ancillary Agreements?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) To hold Franchisee and Franchisee's Owners liable for, and recover from each of them, jointly and severally, all payments, fees, monetary obligations, financial obligations, interest, and charges due and owing to Franchisor from Franchisee pursuant to this Agreement, the Ancillary Agreements, and/or any other agreements between Franchisee and Franchisor, including, without limitation, Royalty Fees and Advertising Contributions with each and every payment and obligation to be accelerated and due immediately.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the franchisee's owners are liable for the franchisee's obligations under the Ancillary Agreements. Specifically, if Deer Solution terminates the franchise agreement, Deer Solution has the right to hold both the franchisee and the franchisee's owners liable for payments and obligations.
This liability extends to all payments, fees, monetary obligations, financial obligations, interest, and charges owed to Deer Solution. This includes obligations arising from the Franchise Agreement, the Ancillary Agreements, and any other agreements between the franchisee and Deer Solution. The obligations include Royalty Fees and Advertising Contributions, which are accelerated and due immediately upon termination.
Furthermore, Deer Solution can recover lost revenues, profits, and fees from both the franchisee and the franchisee's owners. This includes Royalty Fees, Brand Development Fund Fees, Advertising Contributions, and all other fees and expenses that would have been paid to Deer Solution throughout the term of the agreement had the breach not occurred. This means that the owners could be responsible for significant financial obligations if the franchise agreement is terminated early due to a breach.