Does the Deer Solution franchisor's appointment of a manager relieve the franchisee of their obligations?

According to Deer Solution's 2025 Franchise Disclosure Document, the franchisor's appointment of a manager for the franchisee's Deer Solution business does not relieve the franchisee of their obligations under the Franchise Agreement. This includes obligations outlined in Article 14.D, which likely covers specific responsibilities related to the operation and management of the franchise. Additionally, the franchisor's appointment of a manager does not constitute a waiver of the franchisor's right to terminate the agreement as per Article 16. This means that even with a manager in place, Deer Solution retains the right to end the franchise agreement if the franchisee fails to meet its obligations.

Even while the Deer Solution business is being managed by a manager appointed by Deer Solution, the franchisor is not liable for any debts, losses, costs, or expenses incurred in the operations of the franchisee's Deer Solution business. This also extends to any creditor of the franchisee for products, materials, supplies, or services purchased by the franchisee's Deer Solution business. This provision clarifies that the franchisee remains financially responsible for the business, even when a manager is appointed by the franchisor.

Deer Solution has the right to charge a Management Service Fee for providing management services and can stop providing these services at any time. This implies that the franchisee will bear the cost of the manager appointed by Deer Solution, and there is no guarantee that these services will be provided indefinitely. A prospective franchisee should inquire about the typical Management Service Fee charged by Deer Solution and the conditions under which these services might be terminated to fully understand the potential financial implications and operational risks.