What is the basis for calculating the Deer Solution Brand Development Fund fee?

According to Deer Solution's 2025 Franchise Disclosure Document, the Brand Development Fund fee is calculated as a percentage of gross sales, less any amount paid towards sales tax. This fee is payable weekly. The specific percentage is determined and designated by Deer Solution in its reasonable business judgment, but franchisees will not be required to contribute more than 3% of their gross sales for each weekly accounting period.

Deer Solution will provide written notice to the franchisee regarding the Brand Development Fund Contribution Percentage. Once this notice is given, the specified percentage will be applicable throughout the term of the agreement, unless otherwise designated by Deer Solution in writing. The Brand Development Fund fee is paid to Deer Solution on the due date, following the same payment terms and methods as royalty fees.

This means that a franchisee's contribution to the Brand Development Fund will fluctuate based on their weekly gross sales. Franchisees should be aware that while the fee is capped at 3% of gross sales, Deer Solution has the discretion to set the actual percentage at any level below that maximum. Franchisees should clarify with Deer Solution what the current Brand Development Fund Contribution Percentage is and how often it might be adjusted.