Under the Deer Solution Franchise Agreement, what financial obligations of the Franchisee are secured by the personal guaranty?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) To hold Franchisee and Franchisee's Owners liable for, and recover from each of them, jointly and severally, all payments, fees, monetary obligations, financial obligations, interest, and charges due and owing to Franchisor from Franchisee pursuant to this Agreement, the Ancillary
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to the 2025 Deer Solution Franchise Disclosure Document, the Franchise Owner and Spouse Agreement and Guaranty ensures that the franchisee's owners are liable for the franchisee's financial obligations to Deer Solution. Specifically, if Deer Solution terminates the Franchise Agreement, the owners are liable for all payments, fees, monetary obligations, financial obligations, interest, and charges the franchisee owes Deer Solution.
This means that the personal assets of the franchisee's owners and their spouses could be at risk if the Deer Solution franchise fails to meet its financial obligations. This is a standard practice in franchising, as it provides the franchisor with additional security and recourse in case of default by the franchisee.
Prospective Deer Solution franchisees should carefully review the Franchise Owner and Spouse Agreement and Guaranty with their legal and financial advisors to fully understand the extent of their personal liability. They should also assess their own financial situation and risk tolerance before signing the agreement.