What was the amount of management fees expense related to related parties for Deer Solution in 2023?

According to Deer Solution's 2025 Franchise Disclosure Document, the management fees expense related to related parties in 2023 was $38,000. This indicates the amount Deer Solution paid to affiliated entities for management services during that year.

Related party transactions are common in franchising, where the franchisor may outsource certain functions to related companies. For a prospective franchisee, it's important to understand the nature of these related party transactions and whether they are conducted at arm's length. This means ensuring that the fees paid to related parties are fair and reasonable compared to what an independent third party would charge for similar services.

The FDD also indicates that Deer Solution had related party transactions with affiliates, including James J Messina Landscaping Inc., R3volution brands, and VIP Rewards Center, LLC. These transactions included referral fees, legal and professional fees, marketing and advertising expenses, and management fees expenses. Understanding the specifics of these relationships and the services provided is crucial for assessing the financial health and transparency of Deer Solution.

Prospective franchisees should carefully review the financial statements and related party disclosures in the FDD to evaluate the potential impact on their investment. It is advisable to consult with a financial advisor or attorney to assess the fairness and reasonableness of these transactions and their potential impact on the overall profitability of a Deer Solution franchise.