Can Deer Solution or its affiliates receive payments from suppliers based on the franchisee's dealings with those suppliers?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
ased (hereinafter, the "30 Day Cure Notice"). Franchisee agrees that the 30 Day Cure Notice is a strict condition precedent to Franchisee commencing, or otherwise instituting, legal action or proceeding against Franchisor for any reason whatsoever.
ARTICLE 17 OBLIGATIONS UPON TERMINATION, EXPIRATION AND CONTINUING OBLIGATIONS
17.A. PAYMENT OF AMOUNTS OWED TO FRANCHISOR
Without limitation as to any other Article or provision of this Agreement, upon expiration or termination of this Agreement for any reason, Franchisee shall immediately pay to Franchisor all sums and fees due from Franchisee to Franchisor under the terms of this Agreement including, but not limited to Royalty Fees and Advertising Contributions and all other sums and fees due from Franchisee to Franchisor and/or Franchisor affiliates and/or suppliers for products and services including, but not limited to, System Supplies.
17.B. CEASE OPERATIONS AND PROTECTION OF THE SYSTEM
Upon expiration, termination, or Transfer of this Agreement for any reason, Franchisee shall immediately:
- (1) Permanently cease to be a franchise owner of the Deer Solution Business that was the subject of this Agreement and cease to operate such Deer Solution Business under the System;
- (2) Refrain from directly or indirectly, holding oneself/itself out to any person or entity, or represent themselves/itself as a present or former Deer Solution franchisee;
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
Based on the 2025 Deer Solution Franchise Disclosure Document, it is not explicitly stated whether Deer Solution or its affiliates receive payments from suppliers based on the franchisee's dealings with those suppliers. However, the agreement does state that upon termination of the agreement, the franchisee must pay all sums due to the franchisor, affiliates, and suppliers for products and services, including System Supplies. This suggests that there are designated suppliers from whom franchisees must purchase supplies.
Additionally, the FDD states that franchisees must use System Supplies, which include Deer Solution branded, non-branded, and third-party branded equipment and supplies designated by the franchisor. This further reinforces the idea of designated suppliers.
To fully understand the financial implications, a prospective franchisee should ask Deer Solution for clarification on whether the company or its affiliates receive any rebates, commissions, or other forms of payment from the designated suppliers based on franchisee purchases. This information is crucial for assessing the overall cost of goods and potential profitability of the franchise.