factual

Does Deer Solution Franchisor's right of first refusal apply to all transfers of the franchise?

Deer_Solution Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisor's right of first refusal in this Article 14.F. shall not apply to any Transfer pursuant to Article 14.E. of this Agreement.

Source: Item 23 — RECEIPTS (FDD pages 55–246)

What This Means (2025 FDD)

According to Deer Solution's 2025 Franchise Disclosure Document, the franchisor's right of first refusal does not apply to all transfers. Specifically, Deer Solution's right of first refusal described in Article 14.F does not apply to any transfer pursuant to Article 14.E of the agreement.

When a franchisee seeks to transfer their Deer Solution business, they must first obtain a bona fide, signed written offer from a prospective purchaser and submit it to Deer Solution. The franchisor then has 30 days to decide whether to purchase the franchisee's interest under the same terms as the offer, with the option to substitute cash for other forms of payment. If Deer Solution decides to purchase the interest, the franchisee is obligated to sell it to them, and Deer Solution has an additional 60 days to prepare for closing.

If Deer Solution declines to exercise its right of first refusal, the franchisee may proceed with the transfer to the original purchaser, provided the sale is completed within 60 days of the offer and there are no material changes to the terms. If the sale is not completed within this timeframe or the terms change, Deer Solution's right of first refusal is reinstated. This process ensures that Deer Solution has the opportunity to maintain control over who enters their franchise system and under what conditions.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.