Can Deer Solution or its affiliates be designated as the exclusive supplier for the Deer Solution system?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
roved or designated supplier. We may designate a supplier (which may include us or our affiliates) as the exclusive supplier for the System. Our specifications and list of approved and designated suppliers is contained in our Manuals. We will notify you of any changes to our specifications or list of approved or designated suppliers. We may notify you of these changes in various ways, including written or electronic correspondence, amendments, and updates to our Manuals, verbal, and other forms of communication. We formulate and modify our standards and specifications for products and services based on our industry experience and our management decisions as to the overall operation and expansion of the System.
Suppliers and Supplier Criteria
We may designate ourselves and our affiliates as exclusive suppliers of source restricted goods and services. We may designate ourselves or a third party as exclusive supplier irrespective of the existence of competing suppliers. If, in the Manuals, we do not designate a supplier for a particular item, you will purchase all such products, supplies and services from suppliers who meet our specifications and standards.
Our affiliate, APS Innovates, LLC is currently designated as an approved supplier of deer repellent and provides central purchasing and fulfillment services to franchisees. Our affiliate, Two Knights Media, Inc. was designated as an approved supplier of software, media development, marketing management, website design and SEO services until January 1, 2025 when R3volution Brands Inc. began providing these services as well as Sales and Support Center services. Our affiliate, VIP Rewards Center, LLC is currently designated as an approved supplier of rewards program services to franchisees. Except for APS Innovates, LLC, Two Knights Media, Inc., and VIP Rewards Center, LLC, currently we are not and our affiliates are not the only approved suppliers of the source restricted goods and services identified below. Except as to Kris Goodrich, Jaime Goodrich, and Benjamin Goodrich, no officer of ours currently owns an interest in any of our designated suppliers.
During the fiscal year ending December 31, 2024, our affiliate APS Innovates, LLC earned $43,481.73 in revenue from franchisee purchases. During the fiscal year ending December 31, 2024, our affiliate Two Knights Media, Inc. earned $98,983.89 in revenue from franchisee purchases. During the fiscal year ending December 31, 2024, our affiliate VIP Rewards Center, LLC earned $9,621.22 in revenue from franchisee purchases.
If you want to purchase or lease a source restricted item from a supplier that has not been previously approved or designated by us in writing, you must send us a written request for approval and submit additional information that we may request. We may charge you a supplier review and testing fee and we may request that you send us samples from the supplier for testing and documentation from the supplier for evaluation. We may also require, subject to our discretion, that we be allowed to inspect the supplier's facilities. We will notify you of our approval or disapproval within a reasonable time, not to exceed 60
days, after we receive your written request for approval and all additional information and samples that we may request. We may, in our discretion, withhold our approval.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 24–27)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, Deer Solution or its affiliates can be designated as the exclusive supplier for the Deer Solution system. The FDD states that Deer Solution may designate a supplier, including themselves or their affiliates, as the exclusive supplier for the system. This means that franchisees may be required to purchase certain goods and services only from Deer Solution or its affiliated companies.
This ability to designate exclusive suppliers allows Deer Solution to maintain quality control and standardization across all franchise locations. However, it also means that franchisees may not be able to shop around for the best prices on certain items, as they are required to purchase from the designated supplier, which could be Deer Solution or one of its affiliates.
The FDD specifies that APS Innovates, LLC, Two Knights Media, Inc., and VIP Rewards Center, LLC are affiliates of Deer Solution and have been designated as approved suppliers. In the fiscal year ending December 31, 2024, APS Innovates, LLC earned $43,481.73, Two Knights Media, Inc. earned $98,983.89, and VIP Rewards Center, LLC earned $9,621.22 from franchisee purchases. Deer Solution estimates that purchases from designated exclusive suppliers will represent approximately 80% of the franchisee's total purchases and leases in establishing the franchised business and about 40% of ongoing operating expenses.
The FDD also outlines a process for franchisees to request approval of alternative suppliers. Franchisees must submit a written request, provide additional information, and potentially pay a supplier review and testing fee. Deer Solution has up to 60 days to respond to the request. Approval is not guaranteed and depends on factors such as the supplier's ability to meet Deer Solution's standards and whether the approval would advance the overall interests of the Deer Solution system.