What was the amount of management fees revenue charged to related parties by Deer Solution in 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 company generated $101,639 in management fees revenue from related parties in 2024. This indicates the revenue Deer Solution Franchising, LLC received from entities with some form of affiliation or common control.
For a prospective franchisee, this figure provides insight into the financial interactions between Deer Solution and its related entities. Understanding the nature and extent of these related-party transactions can be important for assessing the overall financial health and transparency of the franchisor. It's a common practice for franchisors to have dealings with affiliated companies, but the details of these transactions should be carefully scrutinized.
It is important to note that the auditor's report included in the FDD emphasizes that Deer Solution has extensive transactions and relationships with its affiliates. The auditor states that the financial statements may not be indicative of the results of operations that would have been achieved if Deer Solution had operated without such affiliations. This is an important consideration for potential franchisees as it highlights the potential impact of these relationships on the company's financial performance.