What legal requirement must a Deer Solution franchise transfer comply with?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
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. Such agreements shall supersede this Agreement and its associated agreement in all respects, and the terms of Franchisor's then current agreements may differ from the terms in this Agreement, provided that such agreements shall provide for the same Royalty Fee, Advertising Contributions, and all other financial or monetary obligations established in this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to the 2025 Deer Solution Franchise Disclosure Document, if a transfer substantially involves all franchise assets or a controlling interest, Deer Solution has the option to require the transferee to execute the then-current standard Franchise Agreement. This agreement would be for a term ending on the original agreement's expiration date.
This new agreement supersedes the original agreement and associated agreements. While the terms may differ, the new agreement must maintain the same Royalty Fee, Advertising Contributions, and all other financial obligations as the original agreement. This ensures that Deer Solution's revenue streams remain consistent even with a change in franchisee ownership.
In practical terms, a potential buyer of a Deer Solution franchise needs to be prepared to potentially operate under a new franchise agreement with updated terms. However, the core financial obligations related to royalties and advertising should remain consistent with the original agreement. This provides some financial predictability for the incoming franchisee while allowing Deer Solution to update operational aspects of the franchise agreement.