Under the Deer Solution Franchise Agreement, what happens to obligations that are intended to survive the termination, expiration, or transfer of the agreement?

According to Deer Solution's 2025 Franchise Disclosure Document, any obligations within the Franchise Agreement that are explicitly stated or inherently designed to continue beyond the agreement's expiration, termination, or transfer will remain in full effect. These obligations will persist until they are either completely fulfilled or naturally expire based on their terms. This means that certain responsibilities and duties a franchisee has to Deer Solution do not simply vanish when the franchise agreement ends or is transferred.

This continuation of obligations typically includes aspects like maintaining confidentiality of proprietary information, non-compete clauses, and settling any outstanding payments. For example, the franchisee must continue to protect Deer Solution's confidential information and may be restricted from operating a competing business within a certain area and timeframe, even after the franchise agreement concludes. Also, the franchisee is responsible for paying any outstanding royalty or advertising fees that are owed to Deer Solution.

For a prospective Deer Solution franchisee, this clause underscores the importance of understanding all the terms of the agreement and planning for the long-term implications of these surviving obligations. It is crucial to carefully review the franchise agreement to identify which obligations survive termination or transfer and to understand the extent and duration of these continuing responsibilities. Franchisees should seek legal counsel to fully grasp these implications and to ensure they are prepared to meet these obligations even after they are no longer operating a Deer Solution franchise.