Under what circumstances is a Deer Solution franchisee prohibited from withholding payments to the franchisor?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
ny payments received from Franchisee or to offset any indebtedness of Franchisee to Franchisor to any past due indebtedness of Franchisee for Royalty Fees, Advertising Contributions, purchases from Franchisor or its affiliates, interest, or any other indebtedness of Franchisee to Franchisor or its affiliates.
5.H. WITHHOLDING PAYMENTS UNLAWFUL
Franchisee agrees that under no circumstance is Franchisee entitled to withhold payments due to Franchisor under this Agreement. Among other things and without limitation to the foregoing, Franchisee expressly agrees that any claim by Franchisee as to the alleged non-performance of Franchisor's obligations shall not permit and/or entitle Franchisee to withhold payments due Franchisor under this Agreement.
ARTICLE 6 RESTRICTIVE COVENANTS AND OBLIGATIONS
6.A. NECESSITY FOR RESTRICTIVE COVENANTS
Franchisee agrees that only through the course of entering into this Agreement is Franchisee being provided with access to the System, Franchisor's training, use of the Licensed Marks and, access to the Operations Manual and Confidential Information.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to the 2025 Deer Solution Franchise Disclosure Document, a franchisee is never entitled to withhold payments due to Deer Solution under any circumstances. This includes situations where the franchisee believes Deer Solution is not fulfilling its obligations under the franchise agreement. The franchisee agrees that any claim of non-performance by Deer Solution does not justify withholding payments.
Deer Solution explicitly prohibits franchisees from withholding any payment, fee, or amount owed to them, regardless of any alleged nonperformance, breach, or default by Deer Solution. This encompasses all financial obligations, including royalty fees and advertising contributions.
Furthermore, the Deer Solution franchise agreement states that franchisees do not have the right to offset or withhold any amount allegedly owed to them by Deer Solution against any payment due to Deer Solution. This means a franchisee cannot deduct any perceived debt from their payments to Deer Solution, ensuring that all payments must be made in full, irrespective of any disputes or claims against the franchisor.