If Deer Solution appoints a manager, does this relieve the Deer Solution franchisee of their obligations?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor's appointment of a manager for Franchisee's Deer Solution Business does not relieve Franchisee of its obligations under this Agreement, including this Article 14.D., or constitute a waiver of Franchisor's right to terminate this Agreement pursuant to Article 16, below.
At all times, including while Franchisee's Deer Solution Business may be managed by Franchisor's appointed manager, Franchisor shall not be liable for any debts, losses, costs, or expenses incurred in the operations of Franchisee's Deer Solution Business or to any creditor of Franchisee for any products, materials, supplies, or services purchased by Franchisee's Deer Solution Business.
Franchisor has the right to charge a Management Service Fee for such management services and may cease to provide management services at any time.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the appointment of a manager by Deer Solution does not relieve the franchisee of their obligations under the franchise agreement. This holds true even if Deer Solution appoints a manager to maintain operations due to the death or permanent disability of the franchisee or the franchisee's managing owner. The franchisee remains responsible for fulfilling all obligations outlined in the agreement.
This means that even with a manager in place, the franchisee is still accountable for financial obligations such as royalty fees and advertising contributions, as well as adherence to all other terms and conditions of the agreement. The franchisee's failure to meet these obligations could still result in a breach of contract, potentially leading to termination of the franchise agreement.
Furthermore, the FDD states that Deer Solution will not be liable for any debts, losses, costs, or expenses incurred during the operation of the franchisee's Deer Solution business, even when managed by Deer Solution's appointed manager. Deer Solution also has the right to charge a management service fee for these services and may cease providing management services at any time. This underscores that the franchisee retains ultimate responsibility for the business's financial and operational performance, regardless of who is managing it.