What was the amount due from related parties to Deer Solution as of December 31, 2024?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
nt fees expenses paid to James J Messina Landscaping Inc., R3volution brands., and VIP Rewards Center, LLC.
The related parties' transactions in the years ending December 31, 2024 and 2023 were as follows:
| 2024 | 2023 | ||
|---|---|---|---|
| Due from related parties | $ 550 | $ | - |
| Referral fee expense - related parties | 8,360 | - | |
| IP Licensing – related parties | 5,000 | ||
| Legal and professional - related parties | 68,000 | (=) | |
| Advertising and marketing – related parties | 206,000 | - | |
| Management fees expense - rel |
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the amount due from related parties to Deer Solution as of December 31, 2024, was $550. In 2023, the amount due from related parties was zero.
It is important for a prospective franchisee to understand the nature of these related party transactions. Related party transactions can include payments to entities controlled by the franchisor's owners or affiliates for services such as advertising, management, or royalties. While not inherently problematic, these transactions should be carefully scrutinized to ensure they are conducted at arm's length and represent fair market value.
A potential Deer Solution franchisee should seek clarification from the franchisor regarding the specific nature of the related parties, the services they provide, and the terms of the transactions. Understanding these relationships and the associated costs is crucial for assessing the overall financial health and transparency of the Deer Solution franchise system.