Does Deer Solution require prior written consent for a franchisee to transfer their franchise?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
| l. | Franchisor's approval of transfer by franchisee | 14.B. | Transfers require our prior written consent, which may be granted or withheld in our discretion. We will not unreasonably withhold our consent of approval of franchisee's transfer. | | m. | Conditions for franchisor's approval of transfer | 14.C. | For approval of your transfer, you must provide us with 30 days prior written notice of the proposed transfer; you and your Owners must not have defaulted in your obligations under the Franchise Agreement and all other agreements with us; you and your Owners must be in compliance with your obligations under the Franchise Agreement and all other agreements with us; the transferee must agree to be bound by all of the terms and provisions of the Franchise Agreement; the transferee's owners and their spouses must personally guarantee all of the terms and provisions of the Franchise Agreement; you and your Owners and their spouses must sign a general release in favor of us; the transfer must provide for the assignment and/or ownership of the approved location for the Franchised Business, and the transferees continued | | n. | Franchisor's right of first refusal to acquire franchisee's business | 14.F. | We have the right to match any offer to purchase your Deer Solution Business or the Corporate Entity operating your Deer Solution Business. | |----|------------------------------------------------------------------------------|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–45)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, franchisees are required to obtain prior written consent from Deer Solution before transferring their franchise. Deer Solution has the discretion to grant or withhold this consent, but the FDD states that Deer Solution will not unreasonably withhold consent.
Several conditions must be met for Deer Solution to approve a transfer. The franchisee must provide 30 days' prior written notice, and neither the franchisee nor their owners can be in default or non-compliance with the Franchise Agreement or any other agreements with Deer Solution. The transferee must agree to be bound by all terms of the Franchise Agreement, and the transferee's owners and their spouses must personally guarantee the agreement. Additionally, the franchisee, their owners, and their spouses must sign a general release in favor of Deer Solution. The transfer must also ensure the assignment and/or ownership of the approved location for the Franchised Business, with the transferee continuing its operation.
Deer Solution also retains the right of first refusal, allowing them to match any offer to purchase the franchisee's Deer Solution Business or the corporate entity operating it. This means that before a franchisee can accept an offer from a third party, they must give Deer Solution the opportunity to purchase the business on the same terms. This provision allows Deer Solution to maintain control over who enters the franchise system and to ensure that new franchisees meet their standards.
These transfer provisions are typical in franchising, as they allow the franchisor to maintain quality control and protect the brand. Prospective Deer Solution franchisees should carefully review these requirements and consider the implications before entering into a franchise agreement. Understanding the conditions for transfer and Deer Solution's right of first refusal is crucial for planning the future sale of their business.