How are the Management Service Fees determined when Deer Solution appoints a manager?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) If Franchisee is an individual and not a Corporate Entity, upon the death or permanent disability of Franchisee, the executor, administrator, conservator, or other personal representative of Franchisee, must appoint a manager that meets the equivalent of an Operating Manager within a reasonable time, which shall not exceed 30 days from the date of death or permanent disability.
The appointed manager (as applicable) must serve and qualify as an Operating Manager and attend and successfully complete the Training Program within 60 days of the appointment.
If Franchisee's Deer Solution Business is not being managed by a Franchisor approved Operating Manager (as applicable) within 30 days after such death or permanent disability, Franchisor is authorized, but is not required, to immediately appoint a manager to maintain the operations of Franchisee's Deer Solution Business for, and on behalf of, Franchisee at Franchisee's sole costs until an approved Operating Manager is able to assume the management and operation of Franchisee's Deer Solution Business.
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 the 2025 Deer Solution Franchise Disclosure Document, if the franchisee dies or becomes permanently disabled and cannot manage the business, Deer Solution has the option to appoint a manager to maintain operations. If the franchisee is an individual, the executor must appoint a manager within 30 days, who then has 60 days to complete the training program. If a manager is not appointed, Deer Solution can appoint one at the franchisee's expense.
Deer Solution's appointment of a manager does not relieve the franchisee of their obligations under the agreement. The franchisee remains responsible for all debts, losses, costs, and expenses incurred during the operations.
The FDD states that Deer Solution "has the right to charge a Management Service Fee for such management services and may cease to provide management services at any time." However, the FDD does not specify how the Management Service Fee is calculated or what factors influence its determination. A prospective franchisee should inquire about the typical range or formula used to calculate this fee to understand the potential costs associated with this scenario.