When does the 'Accounting Period' commence for a Deer Solution franchise?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
"Accounting Period" refers to and means the period of time selected and determined by Franchisor for the required measurement and reporting of financial information and payment of financial obligations by Franchisee. The applicable measurement period will be determined by Franchisor from time to time with respect to Franchisee's obligations to report financial information and data to Franchisor and Franchisee's payment of all fees, including, and other obligations under this Agreement. The respective "Accounting Period" shall be those Franchisor designated times, whether, instantly on a recurring basis upon receipt of Gross Sales, weekly, monthly, or otherwise, as designated by Franchisor, with all such Accounting Periods automatically commencing on the earlier of the (a) Scheduled Business Commencement Date, or (b) the Actual Business Commencement Date of the Franchised Business and, continuing, throughout the Term of this Agreement. Unless otherwise designated by Franchisor at any time, unless otherwise specified in this Agreement, the Accounting Period shall be a weekly period for each and every week throughout the Term of this Agreement.
"Actual Business Commencement Date" refers to and means the date of the grand opening of the Franchised Business and/or the date upon which the Franchised Business is open to the public.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the Accounting Period for a franchisee begins on the earlier of two dates: the Scheduled Business Commencement Date or the Actual Business Commencement Date. This period continues throughout the entire term of the Franchise Agreement. Unless Deer Solution designates otherwise, the Accounting Period is weekly.
The Scheduled Business Commencement Date is the date the franchisee is scheduled to begin operations, while the Actual Business Commencement Date is when the franchise actually opens to the public. This means that financial reporting and fee obligations for a Deer Solution franchise start as soon as either the planned or actual opening occurs.
For a prospective Deer Solution franchisee, this definition is important because it clarifies when the franchisee's financial obligations to the franchisor begin. Understanding the start date of the Accounting Period is crucial for budgeting and financial planning, as it dictates when the franchisee must start reporting financial information and paying fees to Deer Solution. Franchisees should confirm these dates with Deer Solution to ensure accurate financial reporting and compliance with the Franchise Agreement.