What specific franchisee obligations are guaranteed by the individual signing the Deer Solution agreement?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, you have received and have thoroughly reviewed the completed Franchise Agreement, including Schedules and Exhibits attached to the Franchise Agreement;
WHEREAS, we have recommended that you thoroughly review the Franchise Agreement, this Agreement and all exhibits and schedules to the Franchise Agreement with a lawyer selected and hired by you;
WHEREAS, you represent to us that you are either: (a) an Owner of Franchisee such that you own or control a legal, equitable or beneficial ownership or equity interest in Franchisee and/or otherwise meet the definition of an "Owner" as set forth in this Agreement; and/or (b) the "Spouse" of an Owner of Franchisee;
WHEREAS, you acknowledge that this Agreement will apply to you individually, jointly, and severally with all others who sign this Agreement (including if this Agreement is signed in counterparts or electronically among other Owners and Spouses);
WHEREAS, you acknowledge that this Agreement, among other things, personally obligates you to guarantee Franchisee's obligations to us and obligates you to brand protection, confidentiality and noncompetition restrictions and covenants and that you enter into this Agreement to induce us to enter into the Franchise Agreement with Franchisee; and
WHEREAS, you acknowledge that we are relying on this Agreement and that without this Agreement we would not have entered into and/or would not be simultaneously entering into the Franchise Agreement with Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the individual signing the agreement, whether as an owner or spouse of an owner, acknowledges several key obligations. These individuals guarantee the franchisee's obligations to Deer Solution, and they are bound by brand protection, confidentiality, and noncompetition restrictions. This acknowledgment is crucial, as Deer Solution relies on this agreement to enter into the Franchise Agreement with the franchisee.
The document emphasizes that the agreement applies to the individual signatories jointly and severally. This means that each person who signs the agreement is independently responsible for fulfilling all obligations. Deer Solution makes it clear that without this personal guarantee, they would not proceed with the franchise agreement.
Prospective franchisees should carefully review these obligations with their legal and financial advisors, as recommended by Deer Solution. Understanding the full scope of these personal guarantees is essential before signing the agreement, as it directly impacts the individual's responsibilities and potential liabilities.