What are the franchisee's payment obligations to Deer Solution?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor has sole discretion to apply any payments received from Franchisee or to offset any indebtedness of Franchisee to Franchisor to any past due indebtedness of Franchisee for Royalty Fees, Advertising Contributions, purchases from Franchisor or its affiliates, interest, or any other indebtedness of Franchisee to Franchisor or its affiliates.
Franchisee agrees that under no circumstance is Franchisee entitled to withhold payments due to Franchisor under this Agreement. Among other things and without limitation to the foregoing, Franchisee expressly agrees that any claim by Franchisee as to the alleged non-performance of Franchisor's obligations shall not permit and/or entitle Franchisee to withhold payments due Franchisor under this Agreement.
Without limitation as to any other Article or provision of this Agreement, upon expiration or termination of this Agreement for any reason, Franchisee shall immediately pay to Franchisor all sums and fees due from Franchisee to Franchisor under
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;
(11) Franchisee must pay the Transfer Fee to Franchisor;
(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, franchisees have several payment obligations to the company. Deer Solution has the sole discretion to apply any payments received from the franchisee to any past due indebtedness for Royalty Fees, Advertising Contributions, purchases from Deer Solution or its affiliates, interest, or any other indebtedness. The franchisee is not entitled to withhold payments due to Deer Solution under any circumstances, even if the franchisee claims non-performance of Deer Solution's obligations.
Upon termination or expiration of the franchise agreement, the franchisee must immediately pay all sums and fees due to Deer Solution. If the agreement is terminated, Deer Solution can hold the franchisee and their owners liable for all payments, fees, monetary obligations, financial obligations, interest, and charges due, including Royalty Fees and Advertising Contributions, which will be accelerated and due immediately.
In the event of a transfer of the franchise, the transferee must adhere to the financial obligations established in the original agreement, including the Royalty Fee, Advertising Contributions, and all other financial or monetary obligations. The franchisee must also pay a Transfer Fee to Deer Solution. These obligations ensure that Deer Solution receives the financial considerations agreed upon in the franchise agreement, regardless of the franchisee's operational status or any disputes that may arise.