What is the term length of successive Deer Solution franchise agreements?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Transfers which in the aggregate Transfers substantially all of the assets of the Franchised Business or a controlling interest in Franchisee, then, at the election of Franchisor and upon notice from Franchisor to Franchisee, the transferee may be required to execute (and/or, upon Franchisor's request, shall cause all interested parties to execute) for a term ending on the expiration date of the original Term of this Agreement, the then current standard form Franchise Agreement offered to new franchisees of Deer Solution Businesses and any other agreements as Franchisor requires. Such agreements shall supersede this Agreement and its associated agreement in all respects, and the terms of Franchisor's then current agreements may differ from the terms in this Agreement, provided that such agreements shall provide for the same Royalty Fee, Advertising Contributions, and all other financial or monetary obligations established in this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
Based on the 2025 Deer Solution Franchise Disclosure Document, when a franchisee transfers their business, the transferee may be required to execute the then-current standard form franchise agreement for a term ending on the expiration date of the original agreement. This ensures that the franchise remains active until the initial term concludes, even under new ownership.
This new agreement will supersede the original franchise agreement in all respects. While the terms may differ from the original agreement, the new agreement must maintain the same Royalty Fee, Advertising Contributions, and all other financial obligations as the initial agreement. This protects the franchisor's revenue streams and ensures consistency across the franchise system.
For a prospective Deer Solution franchisee, this means that if they plan to sell their franchise, the new owner will likely need to sign a new agreement that lasts until the end of the original term. This could impact the resale value and the attractiveness of the franchise to potential buyers, as they will be bound by the terms of the new agreement, including any updated standards or requirements imposed by Deer Solution. It is important to consider these factors when planning for the future of the franchise.