If Deer Solution appoints a manager, is Deer Solution liable for debts incurred by the Franchised Business?

According to Deer Solution's 2025 Franchise Disclosure Document, Deer Solution is not liable for any debts, losses, costs, or expenses incurred in the operations of the franchisee's Deer Solution Business, even if Deer Solution appoints a manager. This protection extends to any creditor of the franchisee for products, materials, supplies, or services purchased by the Deer Solution Business.

This clause is particularly relevant in situations where the franchisee dies or becomes permanently disabled. In such cases, if the franchisee is an individual, their representative must appoint a manager within 30 days. This manager must qualify as an Operating Manager and complete the required training program within 60 days of appointment. If a suitable manager is not appointed within 30 days, Deer Solution has the option, but not the obligation, to appoint a manager to maintain the business operations on behalf of the franchisee, at the franchisee's expense.

Even when Deer Solution appoints a manager, the franchisee remains responsible for all obligations under the franchise agreement. This includes financial responsibilities and compliance with the agreement's terms. Deer Solution can also charge a Management Service Fee for these management services and has the right to discontinue these services at any time.

This provision protects Deer Solution from potential liabilities arising from the operation of a franchised business, especially during transitional periods when the franchisee is unable to manage the business directly. It ensures that the franchisee, or their estate, remains ultimately responsible for the business's debts and obligations, regardless of Deer Solution's temporary management assistance.