What happens if a Deer Solution franchisee fails to operate in conformity with the system?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
as otherwise disclosed in Exhibit H | | | | to this Disclosure Document. | | | | requirements set forth in our Manuals; develop or operate | | | | your Deer Solution | | | | Business in compliance with all federal, | | | | state, and local laws, rules, and regulations, unless, such | | | | violation poses a threat to public health or safety; maintain | | | | insurance coverage that we require; comply with our | | | | standards, systems or specifications as we may designate or | | | | as otherwise designated in the operations manual; fail to | | | | operate your Deer Solution | | | | Business in conformity with our | | | | System or otherwise violate the Franchise Agreement, except | | h. "Cause" defined-non-curable defaults | 16.A.(1), 16.A.(2) | The following are defaults that cannot be cured: three or more instances where you commit a curable default, whether or not you timely cured such default in each instance; you intentionally and knowingly refuse to comply with the terms of the Franchise Agreement, and/or the standards specifications, and/or requirements set forth in the operations manual and/or as communicated to you by us from time to time; you intentionally, knowingly, or negligently operate the Franchised Business in violation of applicable laws, rules, and regulations and, in doing so, create a foreseeable, imminent, and/or immediate threat to the health and safety of others; you abandon the Franchised Business; you or your Owners intentionally made a material statement or omission in questionnaires submitted to us; the data, information, and/or records that you record and/or submit to us are intentionally misleading or false; you transfer or attempt to transfer the Franchised Business or the ownership interests in your franchise company without our approval; you disclose or permit the disclosure of information contained in the operations manual and/or of confidential information; you or your Owners engage in intentionally dishonest or unethical conduct that impacts our System; you and/or your Owners breach and, if such breach is capable of a cure, fail to timely cure another agreement with us including the Owner and Spouse Agreement and Guaranty; you and your Owners and managers fail to complete, to our satisfaction, our initial and on-going training programs; you fail to notify us of the misuse of confidential information and you fail to protect same; you misappropriate or misuse the Licensed Marks; you are deemed insolvent, make an assignment for the benefit of creditors, admit in writing your inability to pay debts; are adjudicated bankrupt, file a voluntary bankruptcy petition or have one filed against you, and/or you acquiesce to the appointment of a trustee or receiver, or a court orders one; execution is levied against the Franchised Business; a final judgment is entered against the Franchised Business and is not satisfied within 30 days; you are dissolved; a lawsuit or action is commenced against the Franchised Business to foreclose on a lien on equipment of the Franchised Business and such action is not dismissed after 60 days; and/or real or personal property used by the Franchised Business is sold or levied by a sheriff or other law enforcement officer; you abandon or fail to continuously own and operate the Franchised Business. | |-----------------------------------------------|-----------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| i. | Franchisee's obligations on termination/non-renewal | 6, 17 | You must: pay all sums that you owe to us under the Franchise Agreement and all other agreements with us; cease owning and operating the Franchised Business; cease representing yourself as a franchisee of ours; permanently cease using and/or accessing the System, the Licensed Marks, our confidential information, the operations manual, the Business Management System, the Business Management System Data, and the System Supplies; return the operations manual and all confidential information to us in the original form provided to you and document the destruction of all electronic files related to same; completely de-identify the location and/or facility associated with the Franchised Business; as requested by us, transfer to us all data, telephone listings, digital media, accounts, web listings and websites associated with the Franchised Business; and abide by the post-termination non-competition covenants and restrictions.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–45)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, failing to operate the Deer Solution business in conformity with their system or otherwise violating the Franchise Agreement can lead to termination of the agreement, except for defaults that are curable.
The FDD outlines several non-curable defaults that can lead to termination. These include instances where a franchisee commits three or more curable defaults, intentionally refusing to comply with the Franchise Agreement or operations manual, operating the franchised business in violation of laws that pose a threat to public health and safety, abandoning the franchised business, making intentional misstatements or omissions in questionnaires, submitting intentionally misleading or false data, transferring the franchise without approval, disclosing confidential information, engaging in dishonest conduct impacting the Deer Solution system, failing to complete training programs, misusing licensed marks, becoming insolvent, or failing to continuously own and operate the franchised business.
Upon termination or non-renewal of the franchise agreement, the franchisee has several obligations. They must pay all outstanding sums owed to Deer Solution, cease operating the franchised business, stop representing themselves as a Deer Solution franchisee, and discontinue using the system, licensed marks, confidential information, operations manual, Business Management System, Business Management System Data, and system supplies. The franchisee must also return the operations manual and all confidential information in their original form, document the destruction of all electronic files related to them, de-identify the location associated with the franchised business, transfer all data, telephone listings, digital media, accounts, web listings, and websites associated with the franchised business to Deer Solution, and adhere to post-termination non-competition covenants and restrictions.