Does the indemnification obligation of Deer Solution survive the termination of the franchise agreement?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
All obligations under this Agreement that expressly, or by their nature, survive, or are intended to survive, the expiration, termination, or Transfer of this Agreement shall continue in full force and effect subsequent to, and notwithstanding, this Agreement's termination, expiration, or Transfer until such obligations are satisfied in full or, by the nature and/or terms, such obligation(s) expire.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the obligations of the franchisee, including indemnification, may survive the termination of the franchise agreement. Specifically, all obligations under the agreement that expressly, or by their nature, are intended to survive the expiration, termination, or transfer of the agreement will continue in full force and effect even after termination. These obligations remain in effect until they are fully satisfied or expire according to their terms.
This means that even after a Deer Solution franchise is terminated, the franchisee may still be responsible for certain liabilities and responsibilities outlined in the franchise agreement. This could include financial obligations, compliance with restrictive covenants, and the duty to protect Deer Solution's brand and system.
For a prospective Deer Solution franchisee, this highlights the importance of carefully reviewing the franchise agreement to understand which obligations survive termination. It is essential to assess the potential long-term liabilities and responsibilities associated with the franchise, even after the business is no longer operating. Consulting with a legal professional to fully understand these obligations is advisable.