What obligations must be satisfied before a Deer Solution franchisee's transfer can be approved?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
this Agreement including, but not limited to this Article 14.B. shall constitute a breach of this Agreement and shall convey to the transferee no rights or interests in this Agreement; and
- (5) In the event of a Transfer of this Agreement that is approved by Franchisor, Franchisee shall not be relieved of Franchisee's obligations under this Agreement whether said obligations accrued and/or arose prior to and/or after the date of Transfer.
14.C. CONDITIONS FOR APPROVAL OF TRANSFER
Provided Franchisee and each Owner and Spouse, respectively, are in substantial compliance with this Agreement and the Ancillary Agreements, and Franchisor does not elect to exercise Franchisor's right of first refusal as set forth in Article 14.F. below, Franchisor shall not unreasonably withhold its approval of a Transfer by Franchisee or an Owner. The proposed transferee (including such assignee's owner(s) and spouse(s) if the proposed transferee is a Corporate Entity) must be of good moral character, have sufficient business experience, aptitude, and financial resources to own and operate a Deer Solution Business, and otherwise meet Franchisor's then applicable standards for franchisees as determined by Franchisor in its sole, but reasonable discretion. Furthermore, the proposed transferee and the proposed transferee's owners and spouses may not own or operate, or intend to own or operate, a Competitive Business. Franchisee agrees that Franchisor may condition approval of a Transfer upon Franchisee's satisfaction (either before, or contemporaneously with, the effective date of the Transfer) of the following:
- (1) Franchisee must provide written notice to Franchisor of the proposed Transfer of this Agreement at least 30 days prior to the Transfer, and Franchisee must have also satisfied the obligations set forth in Article 14.F. below;
- (2) All accrued monetary obligations of Franchisee and all other outstanding obligations to Franchisor and/or Franchisor's affiliates under this Agreement and the Ancillary Agreements must be satisfied in a timely manner, and Franchisee must satisfy all trade, supplier, and vendor accounts and other debts, of whatever nature or kind, in a timely manner;
- (3) Franchisee, each Owner, and each Spouse must not be in default or material breach of this Agreement or the Ancillary Agreements;
- (4) The transferee shall be bound by all terms and conditions of this Agreement, and each owner of the transferee and their respective spouses shall personally execute the Franchise Owner and Spouse Agreement and Guaranty in the form attached to this Agreement as Exhibit 1;
- (5) All obligations of Franchisee under this Agreement and the Ancillary Agreements shall be assumed by the transferee, each individual owner of transferee, and their respective spouses in a manner satisfactory to Franchisor;
- (6) Franchisee, each Owner, and each Spouse must execute the General Release attached to this Agreement as Exhibit 5 releasing Franchisor, Franchisor's affiliates and Franchisor's past and present officers, directors, shareholders, members, partners, agents, representatives, independent contractors, servants, and employees, of any and all claims against Franchisor for matters arising on, or before, the effective date of the Transfer;
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, a franchisee and each owner/spouse must be in substantial compliance with the Franchise Agreement and Ancillary Agreements for a transfer to be considered. Deer Solution must also not elect to exercise its right of first refusal. The proposed transferee must have good moral character, sufficient business experience, aptitude, and financial resources to operate the Deer Solution business, meeting Deer Solution's standards for franchisees. Additionally, the transferee and their owners/spouses cannot own or operate a Competitive Business.
Deer Solution may require the franchisee to fulfill several conditions before or during the transfer. The transferee might need to execute Deer Solution's current standard Franchise Agreement, which could supersede the original agreement, although it must maintain the same Royalty Fee, Advertising Contributions, and other financial obligations. The transferee may also need to upgrade the Administrative Office to meet current standards within a specified timeframe.
Additional obligations include the franchisee, owners, and spouses remaining liable for all obligations to Deer Solution, the transferee completing required training programs, and the franchisee paying the Transfer Fee. Deer Solution must approve the transfer's material terms, ensuring the payment terms are not detrimental to the business's future operations. Finally, any of the transferee's employees with access to confidential information must execute a Confidentiality Agreement.