According to Deer Solution, what entities can own a 'Company Owned Outlet'?

According to Deer Solution's 2025 Franchise Disclosure Document, a Company Owned Outlet can be owned either directly or indirectly by Deer Solution, its affiliate, or any person identified in Item 2 of the Disclosure Document. This definition extends to outlets operated as joint ventures, where ownership is shared in part by Deer Solution, its affiliate, or individuals listed in Item 2. Additionally, an outlet managed by Deer Solution, its affiliate, or those identified in Item 2 also qualifies as a Company Owned Outlet.

For a prospective franchisee, this means that Deer Solution retains various avenues for operating outlets beyond the traditional franchise model. The franchisor has the flexibility to own and manage outlets independently, through affiliates, or in partnership with other entities. This structure allows Deer Solution to maintain direct control over certain operations and potentially test new strategies or services within these company-owned locations.

The inclusion of joint ventures and managed outlets in the definition of Company Owned Outlets suggests that Deer Solution may engage in collaborative business arrangements. Item 2 of the FDD, which is not provided here, likely identifies specific individuals or entities with significant roles or ownership within the Deer Solution organization. Understanding who these individuals are and their relationship to the company could be crucial for a potential franchisee.

It is important for prospective franchisees to understand the operational and financial performance of both franchised and company-owned outlets. While Item 19 provides some financial data on a Company Owned Outlet, franchisees should inquire about the specific differences in operational characteristics between these types of outlets. This includes understanding the managerial skill and efficiency, brand recognition, and fee structures that may differ, as highlighted in the FDD.