Under what circumstances can a Deer Solution franchisee fail to continuously operate the business without facing termination?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
this Agreement, approved by Franchisor in accordance with and subject to this Article 14 and the terms and conditions of this Agreement; and
- (19) Franchisor's consent to a Transfer of any interest that is subject to the restrictions of this Agreement shall not constitute a waiver of any claims it may have against Franchisee or deemed a waiver of Franchisor's right to demand strict and exact compliance with this Agreement by the transferee.
14.D. DEATH OR DISABILITY OF FRANCHISEE OR AN OWNER
- (1) If Franchisee is an individual and not a Corporate Entity, upon the death or permanent disability of Franchisee, the executor, administrator, conservator, or other personal representative of Franchisee, must appoint a manager that meets the equivalent of an Operating Manager within a reasonable time, which shall not exceed 30 days from the date of death or permanent disability. The appointed manager (as applicable) must serve and qualify as an Operating Manager and attend and successfully complete the Training Program within 60 days of the appointment. If Franchisee's Deer Solution Business is not being managed by a Franchisor approved Operating Manager (as applicable) within 30 days after such death or permanent disability, Franchisor is authorized, but is not required, to immediately appoint a manager to maintain the operations of Franchisee's Deer Solution Business for, and on behalf of, Franchisee at Franchisee's sole costs until an approved Operating Manager is able to assume the management and operation of Franchisee's Deer Solution Business. Franchisor's appointment of a manager for Franchisee's Deer Solution Business does not relieve Franchisee of its obligations under this Agreement, including this Article 14.D., or constitute a waiver of Franchisor's right to terminate this Agreement pursuant to Article 16, below. At all times, including while Franchisee's Deer Solution Business may be managed by Franchisor's appointed manager, Franchisor shall not be liable for any debts, losses, costs, or expenses incurred in the operations of Franchisee's Deer Solution Business or to any creditor of Franchisee for any products, materials, supplies, or services purchased by Franchisee's Deer Solution Business. Franchisor has the right to charge a Management Service Fee for such management services and may cease to provide management services at any time.
- (2) If Franchisee is a Corporate Entity, upon the death or permanent disability of Franchisee's Managing Owner, the remaining Owners within a reasonable time, which shall not exceed 30 days from the date of death or permanent disability, must appoint a new Managing Owner that is approved by Franchisor. The appointed Managing Owner must attend and successfully complete the Training Program within 60 days of the appointment. If Franchisee's Deer Solution Business is not being managed by a Franchisor approved Managing Owner (as applicable) within 30 days after such death or permanent disability, Franchisor is authorized, but is not required, to immediately appoint a manager to maintain the operations of Franchisee's Deer Solution Business for, and on behalf of, Franchisee at Franchisee's sole costs until an approved Managing Owner is able to assume the management and operation of Franchisee's Deer Solution Business. Franchisor's appointment of a manager for Franchisee's Deer Solution Business does not relieve Franchisee of its obligations under this Agreement, including this Article 14.D., or constitute a waiver of Franchisor's right to terminate this Agreement pursuant to Article 16, below. At all times, including while Franchisee's Deer Solution Business may be managed by Franchisor's appointed manager, Franchisor shall not be liable for any debts, losses, costs, or expenses incurred in the operations of Franchisee's Deer Solution Business or to any creditor of Franchisee for any products, materials, supplies, or services purchased by Franchisee's Deer Solution Business. Franchisor has the right to charge a reasonable fee for such management services and may cease to provide management services at any time.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, a franchisee's death or permanent disability allows for a temporary cessation of operations without immediate termination. If the franchisee is an individual, their representative must appoint a manager meeting the Operating Manager qualifications within 30 days of the death or disability. This manager must then complete the required Training Program within 60 days of their appointment.
If the Deer Solution business isn't managed by an approved Operating Manager within that initial 30-day window, Deer Solution has the option, but not the obligation, to appoint a manager to maintain operations at the franchisee's expense until a qualified Operating Manager is in place. This appointment by Deer Solution does not relieve the franchisee of their obligations under the agreement, nor does it waive Deer Solution's right to terminate the agreement at a later date if other breaches occur.
If the franchisee is a corporation, and the Managing Owner dies or becomes permanently disabled, the remaining owners have 30 days to appoint a new Managing Owner approved by Deer Solution. This new Managing Owner must complete the Training Program within 60 days of appointment. Similar to individual franchisees, Deer Solution can appoint a manager at the franchisee's cost if a qualified Managing Owner isn't in place within 30 days, without waiving their right to terminate the agreement for other reasons. If the Managing Owner is the only owner of the Corporate Entity, the provisions for individual franchisees apply.