Can Deer Solution or its affiliates become the sole supplier of System Supplies to franchisees?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
in conformity with Franchisor's standards and specifications and as otherwise required by Franchisor in the Operations Manual; (e) have obtained the necessary licenses and permits to operate the Franchised Business; and (f) have obtained Franchisor's written consent to open.
3.B. OPERATIONS OF THE FRANCHISED BUSINESS
At all times, Franchisee's Deer Solution Business shall: (a) be operated within Franchisee's Operating Territory, excluding Closed Markets; (b) be operated from an approved Administrative Office located within the Operating Territory; (c) exclusively offer, sell and provide the Approved Services and Products in accordance with Franchisor's standards, specifications, and requirements; (d) ensure that the Approved Services and Products are only offered and provided by Franchisee through employees and/or Owners that have, to Franchisor's satisfaction, completed the training requirements and Training Programs required by Franchisor; (e) exclusively use, maintain, and, stock in inventory, the System Supplies in such quantities as designated by Franchisor; (f) exclusively purchase the System Supplies from the supplier and/or suppliers, vendor and/or vendors approved by Franchisor and designated by Franchisor, in Franchisor's Reasonable Business Judgment; (g) be exclusively managed and operated by Franchisee or, if Franchisee is a Corporate Entity, Franchisee's Managing Owner; (h) maintain the necessary licenses and permits and, those licenses and permits required, and/or recommended by Franchisor, for Franchisee's development, ownership, and operation of the Franchised Business; (i) exclusively provide and, if applicable, deliver, the Approved Services and Products from Deer Solution Service Vehicles; and (j) be operated in conformity with Franchisors standards, specifications, criteria and requirements as set forth by Franchisor in the Operations Manual as such Operations Manual exists as of the Effective Date of this Agreement and as the Operations Manual may be modified and supplemented from time to time in the future by Franchisor, in Franchisor's Reasonable Business Judgment.
3.C. FRANCHISEE'S ADMINISTRATIVE OFFICE
Franchisee must operate the Franchised Business from an Administrative Office that conforms to Franchisor's standards and specifications and, such other requirements as set forth in the Operations Manual. Franchisee must obtain Franchisor's written approval of the location of Franchisee's Administrative Office. If permitted by applicable laws, rules, and regulations, including, but not limited to, local zoning laws and regulations (to be independently verified by Franchisee) Franchisee may designate Franchisee's personal residence as Franchisee's Administrative Office. Otherwise, Franchisee must develop Franchisee's Administrative Office from a commercial location located within the Operating Territory.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, franchisees are required to purchase System Supplies exclusively from suppliers, vendors, or vendors approved and designated by Deer Solution, using Deer Solution's reasonable business judgment. System Supplies include equipment and supplies designated by Deer Solution as required for use in connection with the franchisee's Deer Solution Business and the Approved Services and Products. These supplies encompass Deer Solution branded, non-branded, and third-party branded equipment and supplies for day-to-day operations, such as equipment, deer repellent, materials, uniforms, stationary, sales slips, receipts, customer notices, and other forms and materials, as specified in the Operations Manual or in writing, and as modified by Deer Solution. System Supplies also include products that Deer Solution authorizes for sale to customers.
This means that Deer Solution has the authority to determine the sources from which franchisees must purchase essential supplies and equipment. This ensures uniformity and quality control across all Deer Solution franchise locations.
For a prospective franchisee, this requirement limits their ability to negotiate prices or source supplies from alternative vendors, potentially impacting their operating costs and profit margins. While the FDD states that Deer Solution will use 'Reasonable Business Judgment' in these decisions, it's important for franchisees to understand that Deer Solution ultimately controls the supply chain. A prospective franchisee should inquire whether Deer Solution or its affiliates are approved or designated suppliers, or if Deer Solution intends to become a designated supplier, and what the process is to become an approved supplier.