What release must the Deer Solution franchisee, each owner, and each spouse execute before the transfer is effective?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Maryland FDD Amendment Amendments to the Deer Solution
Franchise Disclosure Document
Item 17, "Renewal, Termination, Transfer and Dispute Resolution," is supplemented, by the addition of the following:
- A. The general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
- B. A Franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
- C. Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise.
- D. The Franchise Agreement provides for termination upon bankruptcy. This provision may not be enforceable under federal bankruptcy law (11 U.S.C. Section 101, et seq.).
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
The 2025 Deer Solution Franchise Disclosure Document outlines several conditions that must be met before a franchise transfer is approved. While the document details numerous requirements for the transfer of a Deer Solution franchise, it does not explicitly state that the franchisee, each owner, and each spouse must execute a general release before the transfer is effective, except in the state of Maryland.
In Maryland, the FDD amendment specifies that "The general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law." This implies that a general release is typically required for transfers but cannot waive rights under Maryland franchise law.
Prospective franchisees should inquire with Deer Solution about the specific releases required in their state and the scope of these releases. Understanding these obligations is crucial for anyone considering transferring their Deer Solution franchise.