What is the Brand Development Fund for Deer Solution franchises?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company 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.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to the 2025 Deer Solution Franchise Disclosure Document, the Brand Development Fund is used to manage brand-level advertising, marketing, and development programs. Franchisees contribute to this fund through a fee, which is calculated as a percentage of gross sales, less any sales tax, and is payable weekly.
Deer Solution may use the Brand Development Fund to cover costs and expenses, such as salaries, administrative costs, and overhead, related to the fund's administration and brand awareness goals. These expenses can include advertising, marketing, product and service testing, website upgrades, and other marketing activities. However, the franchisor cannot use these funds for general operating expenses, except for reasonable salaries and administrative costs related to the fund's activities.
Deer Solution-owned businesses or those owned by its affiliates are not required to contribute to the Brand Development Fund. The document clarifies that the Brand Development Fund is not a trust, and Deer Solution is not a trustee or fiduciary of the fund. The franchisor can deposit and maintain the fund's fees in its general accounts without segregating them from other assets.
While Deer Solution will try to use the Brand Development Fund to develop advertising and marketing materials and programs, it doesn't have to ensure that expenditures in any geographic area are proportionate to the contributions from Deer Solution businesses in that area. Franchisees are still obligated to contribute to the fund, even if they don't directly benefit from the advertising and marketing materials. Deer Solution may establish a council to provide guidance on the fund's administration and marketing matters, but the franchisor ultimately makes the decisions.