Can Deer Solution transfer its rights and obligations under the Franchise Agreement and Ancillary Agreements in whole or in part?
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;
(8) The transferee, at its expense, must improve, modify, refurbish, renovate, remodel, and/or otherwise upgrade Franchisee's Administrative Office to conform to the then current standards and specifications of Franchisor, and the transferee must complete such improvements, modifications, refurbishments, renovations, remodeling, and/or upgrading within the time period Franchisor reasonably specifies;
(9) Franchisee, each Owner, and each Spouse shall remain liable for all obligations to Franchisor set forth in this Agreement;
(10) At the transferee's expense, the transferee, and the transferee's Managing Owner, managers and/or any other applicable employees of transferee's Deer Solution Business must complete any training programs then in effect for franchisees of Deer Solution Businesses upon terms and conditions set forth in this Agreement or as Franchisor otherwise reasonably requires;
(11) Franchisee must pay the Transfer Fee to Franchisor;
(12) Franchisor's approval of the material terms and conditions of the Transfer, and Franchisor determines in Franchisor's Reasonable Business Judgment that the price and terms of payment are not so burdensome as to be detrimental to the future operations of the Franchised Business by the transferee;
(13) Transferee's employees, directors, officers, independent contractors, and agents who will have access to Confidential Information shall execute the Confidentiality Agreement attached hereto as Exhibit 2;
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
Based on the 2025 Deer Solution Franchise Disclosure Document, the franchisor has specific rights regarding the transfer of the franchise agreement. Deer Solution retains the right to market, sell, transfer, convey, and assign the rights granted to the franchisee under the agreement to any other person or entity. This can be done at Deer Solution's sole discretion and without any compensation to the franchisee. This clause gives Deer Solution significant control over who operates a Deer Solution franchise, especially if the agreement is terminated.
If a franchisee transfers a substantial portion of the assets or a controlling interest in the franchise, Deer Solution has the option to require the transferee to execute the then-current standard franchise agreement. This new agreement would supersede the original one and may have different terms, although it must maintain the same Royalty Fee, Advertising Contributions, and other financial obligations as the original agreement. The transferee may also be required to upgrade the Administrative Office to meet Deer Solution's current standards and complete any required training programs.
Additionally, the franchisee, owners, and spouses remain liable for all obligations to Deer Solution, even after the transfer. The transferee must also execute a Confidentiality Agreement if they will have access to confidential information. The franchisor must also approve the material terms and conditions of the transfer, ensuring that the price and terms of payment are not detrimental to the future operations of the Deer Solution franchise. These conditions ensure that Deer Solution maintains control over its brand and operational standards even when a franchise changes hands.