Under what conditions can a Deer Solution franchisee delegate management functions to an Operating Manager?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 ability to delegate management functions to an Operating Manager is primarily addressed in the context of the franchisee's death or permanent disability. If the franchisee is an individual, their representative must appoint a manager meeting the standards of an Operating Manager within 30 days of the death or disability. This appointed manager must then complete the Deer Solution training program within 60 days of their appointment.
If the franchisee is a corporate entity 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 also complete the training program within 60 days. If a suitable manager or Managing Owner is not appointed within the specified timeframe, Deer Solution has the option to appoint a manager to oversee the business until a permanent solution is found, with the franchisee bearing the costs.
Beyond these specific circumstances, the FDD also states that the Operating Manager must supervise and manage the day-to-day operations of the Franchised Business onsite at Franchisee's Administrative Office. The Operating Manager must meet Deer Solution's training and brand quality control standards, complete the initial training program, sign a Confidentiality Agreement, and agree in writing to assume responsibility for the on-site management and supervision of the Franchised Business. This suggests that while the franchisee or Managing Owner typically manages the business, an Operating Manager can be designated to handle daily operations under certain conditions and with specific qualifications.
It is important for prospective Deer Solution franchisees to clarify with the franchisor the full scope of when and how an Operating Manager can be utilized, beyond the circumstances of death or disability. Understanding the specific criteria and approval processes for Operating Managers will be crucial for franchisees planning their business operations and management structure.