What happens to a Deer Solution franchisee's non-competition obligations if the Franchise Agreement is transferred?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
fficers, directors, shareholders, members, partners, agents, representatives, independent contractors, servants, and employees, of any and all claims against Franchisor for matters arising on, or before, the effective date of the Transfer;
- (7) If the proposed Transfer includes or entails the Transfer of this Agreement, substantially all of the assets of the Franchised Business, a controlling interest in Franchisee, or is one of a series of
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.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, if a franchisee transfers substantially all of the assets of their franchised business or a controlling interest in the franchise, Deer Solution has the option to require the transferee to execute the then-current standard form Franchise Agreement. This new agreement would be for a term ending on the original expiration date of the initial agreement.
If Deer Solution exercises this option, the new agreement supersedes the original Franchise Agreement in all respects. The terms of Deer Solution's current agreements may differ from the original agreement. However, the new agreement must provide for the same Royalty Fee, Advertising Contributions, and all other financial or monetary obligations as the original agreement.
Additionally, even with the transfer, the original franchisee, each Owner, and each Spouse remain liable for all obligations to Deer Solution as outlined in the original agreement. This means that even after transferring the business, the original franchisee is still responsible for fulfilling the terms of the initial agreement.