Who must personally guarantee all obligations to Deer Solution under the Franchise Agreement?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
You and, if you are Corporate Entity, each of your members, shareholders and/or partners (collectively, "Owners"), must personally guarantee all of your obligations to us under the Franchise Agreement. Each Owner and Owner's spouse must personally guarantee your obligations to us under the Franchise Agreement.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 39–40)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the franchisee and, if the franchisee is a corporate entity, each of its members, shareholders, and/or partners (collectively, "Owners"), must personally guarantee all of the franchisee's obligations to Deer Solution under the Franchise Agreement. In addition, each Owner's spouse must also personally guarantee the franchisee's obligations to Deer Solution.
This requirement means that the personal assets of the franchisee, its owners, and their spouses are at risk if the Deer Solution franchise fails to meet its financial or other obligations under the Franchise Agreement. This is a significant commitment and potential risk for franchisees and their families.
Personal guarantees are a common practice in franchising, especially for new or smaller businesses, as they provide the franchisor with additional security. Prospective Deer Solution franchisees should carefully consider the implications of this personal guarantee and seek legal and financial advice before signing the Franchise Agreement.