What obligations regarding maintenance, updates, and upgrades must a Deer Solution franchisee satisfy for renewal, as outlined in the agreement?
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;
- (8) The transferee, at its expense, must improve, modify, refurbish, renovate, remodel, and/or otherwise upgrade Franchisee's Administrative Office to conform to the then current standards and specifications of Franchisor, and the transferee must complete such improvements, modifications, refurbishments, renovations, remodeling, and/or upgrading within the time period Franchisor reasonably specifies;
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
The 2025 Deer Solution Franchise Agreement outlines specific obligations for transferees regarding improvements, modifications, and upgrades. If a franchisee transfers their business, the transferee, at their own expense, is required to improve, modify, refurbish, renovate, remodel, and/or upgrade the Administrative Office to meet Deer Solution's current standards and specifications. These upgrades must be completed within a timeframe specified by Deer Solution.
This requirement ensures that all Deer Solution locations maintain a consistent brand image and operational standard. For a prospective franchisee, this means that if they decide to sell their franchise, the buyer will need to invest in bringing the location up to current brand standards. This could involve significant costs, depending on how closely the existing location already aligns with Deer Solution's current specifications.
It is important for franchisees to keep their locations updated and well-maintained throughout the term of their agreement to minimize the potential costs associated with a transfer. Additionally, prospective franchisees should inquire about the typical scope and cost of these required upgrades to better understand the financial implications of a future transfer.