Can the 'Accounting Period' for a Deer Solution franchisee be designated as monthly by the franchisor?
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.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the franchisor has the authority to determine the accounting period for franchisees. The 'Accounting Period' refers to the timeframe selected by Deer Solution for franchisees to measure, report, and pay their financial obligations.
The document specifies that Deer Solution can designate the accounting period as instant upon receipt of gross sales, weekly, monthly, or otherwise. This period applies to reporting financial information and data, as well as the payment of fees and other obligations under the Franchise Agreement. The accounting period commences on the earlier of the Scheduled Business Commencement Date or the Actual Business Commencement Date and continues throughout the term of the agreement.
Unless Deer Solution designates otherwise, the default accounting period is weekly. This means that while monthly accounting periods are permissible, they are not the standard unless specifically chosen by Deer Solution. Prospective franchisees should confirm with Deer Solution what accounting period will apply to their franchise to fully understand their reporting and payment obligations.