When is the Brand Development Fund Fee due for Deer Solution franchisees?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) If Franchisor institutes the Brand Development Fund, Franchisee shall pay, on the Due Date, a mandatory and continuing fee to the Brand Development Fund in an amount equal to a percentage of Gross Sales (as determined and designated by Franchisor in Franchisor's Reasonable Business Judgment) and, in accordance with the payment terms of Article 5.E. of this Agreement (the "Brand Development Fund Fee"), provided, however, Franchisee will not be required to contribute more than 3% of the Gross Sales of the Franchised Business for each weekly Accounting Period;
- (2) Franchisor will provide Franchisee with written notice of the Brand Development Fund Contribution Percentage. Upon such written notice to Franchisee, the Brand Development Fund Fee be paid by Franchisee to the Brand Development Fund and/or, at Franchisor's election, prededucted from Franchisee's Gross Sales by Franchisor and shall be applicable at all times thereafter throughout the Term, except as may be otherwise designated by Franchisor in writing. The Brand Development Fund Fee shall be paid to Franchisor on the Due Date and in accordance with the payment terms and method set forth in Article 5.B. for the payment of Royalty Fees;
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the Brand Development Fund Fee is due on the "Due Date," as specified in the franchise agreement. The fee is a percentage of Gross Sales, determined by Deer Solution, but will not exceed 3% of Gross Sales for each weekly accounting period.
Deer Solution will provide written notice to the franchisee regarding the specific percentage required for the Brand Development Fund Fee. This fee will be consistently applied throughout the term of the agreement unless otherwise specified in writing by Deer Solution.
The Brand Development Fund Fee is to be paid to Deer Solution on the Due Date, following the payment terms and methods outlined in Article 5.B of the agreement, which pertains to the payment of Royalty Fees. Deer Solution also has the option to pre-deduct the Brand Development Fund Fee from the franchisee's Gross Sales.