When is the Brand Development Fund Fee paid by 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;
(3) Franchisor, in Franchisor's Reasonable Business Judgment, shall direct all advertising, media placement, marketing and public relations programs and activities financed by the Brand Development Fund, with sole discretion over the strategic direction, creative concepts, materials, and endorsements used by the Brand Development Fund, and the geographic, market, and media placement and allocation
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 paid on the Due Date, as defined in the 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 Brand Development Fund Contribution Percentage. After this notice, the Brand Development Fund Fee is paid to Deer Solution on the Due Date, following the payment terms and method outlined in Article 5.B for Royalty Fees. At Deer Solution's election, this fee may be pre-deducted from the franchisee's Gross Sales.
Deer Solution collects funds from franchisees to manage the brand level advertising, marketing, and development program. The fee is based on a percentage of the gross sales less any amount paid towards sales tax, payable weekly.