Does Deer Solution require a manager to own equity in the franchise?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
You may hire a manager to assume responsibility for the daily management and supervision of the Franchised Business only if: (a) the manager meets all of our minimum standards and criteria for managers; (b) the manager completes our initial training program; (c) the manager signs a confidentiality agreement approved by us. All of your employees and other agents and representatives who may have access to our confidential information must sign a confidentiality agreement approved by us. We do not require that the manager own any equity interest in the franchise.
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 the 2025 Deer Solution Franchise Disclosure Document, while a franchisee can hire a manager to oversee the daily operations of the business, Deer Solution does not mandate that this manager hold any equity stake in the franchise. However, if the franchisee is a corporate entity, the managing shareholder or partner must maintain at least 25% equity and ownership interest in the franchisee entity.
If a franchisee chooses to hire a manager, that manager must meet Deer Solution's minimum standards, complete the initial training program, and sign a confidentiality agreement. This ensures that the manager is adequately trained and bound to protect the company's confidential information. All employees with access to confidential information must also sign a confidentiality agreement.
It's important to note that while a hired manager isn't required to have equity, the 'Managing Owner' (if the franchisee is a corporate entity) must possess and maintain at least 25% of the equity and ownership interests in the franchisee. This Managing Owner is responsible for the operations of the franchised business. This distinction is crucial for prospective franchisees to understand, especially if they plan to operate the franchise through a corporate entity.