Is the liability of the personal guarantor for a Deer Solution franchise joint and several with the franchisee?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
"Franchise Owner and Spouse Agreement and Guaranty" refers to and means the form of agreement attached to this Agreement as Exhibit 1. The Franchise Owner and Spouse Agreement and Guaranty is an agreement and guarantee individually, jointly, and severally entered into by the Owners and Spouses of Franchisee.
WHEREAS, you acknowledge that this Agreement will apply to you individually, jointly, and severally with all others who sign this Agreement (including if this Agreement is signed in counterparts or electronically among other Owners and Spouses);
WHEREAS, you acknowledge that this Agreement, among other things, personally obligates you to guarantee Franchisee's obligations to us and obligates you to brand protection, confidentiality and noncompetition restrictions and covenants and that you enter into this Agreement to induce us to enter into the Franchise Agreement with Franchisee; and
WHEREAS, you acknowledge that we are relying on this Agreement and that without this Agreement we would not have entered into and/or would not be simultaneously entering into the Franchise Agreement with Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to the 2025 Deer Solution Franchise Disclosure Document, the liability of the personal guarantor is joint and several with the franchisee. Specifically, the Franchise Owner and Spouse Agreement and Guaranty, which is attached as Exhibit 1 to the Franchise Agreement, is an agreement entered into individually, jointly, and severally by the owners and spouses of the franchisee. This means that each person who signs the agreement is responsible for the full amount of the franchisee's obligations. Deer Solution can pursue any one or all of the guarantors for the full debt, regardless of their individual ownership stake or involvement in the business.
This arrangement is further reinforced by the recitals within the Franchise Owner and Spouse Agreement and Guaranty. These recitals state that the agreement applies to the signers individually, jointly, and severally. It also states that the signers are personally obligated to guarantee the franchisee's obligations to Deer Solution. The recitals emphasize that Deer Solution relies on this agreement and would not enter into the Franchise Agreement without it.
For a prospective Deer Solution franchisee, this means that if you are an owner or the spouse of an owner, you will be required to sign the Franchise Owner and Spouse Agreement and Guaranty. By signing this agreement, you are taking on significant personal financial risk. If the Deer Solution franchise fails to meet its financial obligations, Deer Solution can pursue you personally for the full amount owed, even if you were not directly involved in the day-to-day operations of the business. It is highly recommended that prospective franchisees carefully review this agreement with a qualified attorney and financial advisor before signing.