Which articles in the Deer Solution agreement outline the franchisee's obligations related to fees?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
"Management Service Fees" shall have the meaning defined and set forth in Articles 7.I. and 14.D. of this Agreement.
"Sales and Support Center Fees" shall have the meaning defined and set forth in Article 5.D. of this Agreement.
"Sales and Support Center Rate" shall have the meaning defined and set forth in Article 5.D. of this Agreement.
"Supplemental Training" shall have the meaning defined and set forth in Article 4.A. of this Agreement.
"Supplemental Training Fee" shall have the meaning defined and set forth in Article 4.A. of this Agreement.
5.G. APPLICATION OF PAYMENTS
Franchisor has sole discretion to apply any payments received from Franchisee or to offset any indebtedness of Franchisee to Franchisor to any past due indebtedness of Franchisee for Royalty Fees, Advertising Contributions, purchases from Franchisor or its affiliates, interest, or any other indebtedness of Franchisee to Franchisor or its affiliates.
5.H. WITHHOLDING PAYMENTS UNLAWFUL
Franchisee agrees that under no circumstance is Franchisee entitled to withhold payments due to Franchisor under this Agreement. Among other things and without limitation to the foregoing, Franchisee expressly agrees that any claim by Franchisee as to the alleged non-performance of Franchisor's obligations shall not permit and/or entitle Franchisee to withhold payments due Franchisor under this Agreement.
Transfers which in the aggregate Transfers substantially all of the assets of the Franchised Business or a controlling interest in Franchisee, then, at the election of Franchisor and upon notice from Franchisor to Franchisee, the transferee may be required to execute (and/or, upon Franchisor's request, shall cause all interested parties to execute) for a term ending on the expiration date of the original Term of this Agreement, the then current standard form Franchise Agreement offered to new franchisees of Deer Solution Businesses and any other agreements as Franchisor requires. Such agreements shall supersede this Agreement and its associated agreement in all respects, and the terms of Franchisor's then current agreements may differ from the terms in this Agreement, provided that such agreements shall provide for the same Royalty Fee, Advertising Contributions, and all other financial or monetary obligations established in this Agreement;
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.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD page 28)
What This Means (2025 FDD)
According to the 2025 Deer Solution Franchise Disclosure Document, several articles within the franchise agreement outline the franchisee's obligations regarding fees. Specifically, Article 5.D addresses "Sales and Support Center Fees" and the "Sales and Support Center Rate." Additionally, Articles 7.I and 14.D define "Management Service Fees." Article 4.A discusses the "Supplemental Training Fee."
These references indicate that the Deer Solution franchise agreement covers various fees, including those related to sales and support center services, management services, and supplemental training. It is important for a prospective franchisee to carefully review these articles to understand the specific obligations and costs associated with each fee. The FDD also mentions that the franchisor determines the services included in the Sales and Support Center Services and what activities may be delegated to franchisees, potentially impacting the fees franchisees pay.
Furthermore, Article 5.G grants Deer Solution the discretion to apply payments received from the franchisee to any past due indebtedness, including Royalty Fees, Advertising Contributions, or purchases from the franchisor or its affiliates. Article 5.H states that the franchisee is not entitled to withhold payments due to Deer Solution under any circumstances, even in cases of alleged non-performance by the franchisor. These clauses highlight the importance of understanding the payment terms and obligations within the Deer Solution franchise agreement and the potential consequences of non-compliance.
In the event of a transfer of the franchise, Article 17 indicates that the transferee may be required to execute the then-current standard form Franchise Agreement, which will supersede the original agreement. While the new agreement will provide for the same Royalty Fee, Advertising Contributions, and all other financial or monetary obligations established in the original agreement, it is important to note that other terms may differ. Additionally, upon expiration or termination of the agreement, the franchisee is obligated to pay all sums and fees due to Deer Solution, including Royalty Fees and Advertising Contributions.