What was the amount of royalties related to related parties for 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, in 2024, the royalties related to related parties amounted to $62,547. This indicates the financial transactions between Deer Solution Franchising, LLC and its related parties, specifically concerning royalty payments.
For a prospective franchisee, this figure highlights the importance of understanding the relationships Deer Solution has with its related parties. It's essential to investigate the nature of these relationships and how they might affect the franchisee's business. Related party transactions are not uncommon in franchising, but transparency is key. Franchisees should ensure that these transactions are conducted fairly and do not disadvantage them.
Understanding the extent of related party transactions can provide insight into the overall financial structure and potential dependencies within the Deer Solution franchise system. A potential franchisee should seek clarification on how these royalties are determined, what services or benefits are received in exchange for these payments, and whether these arrangements could impact their own profitability or operational autonomy. Consulting with a financial advisor or franchise attorney is advisable to fully assess the implications of these related party transactions.