Can the Deer Solution Brand Development Fund be used for the development of Digital Media?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
public brand recognition and awareness of the Licensed Marks. The Brand Development Fund will not be utilized to directly or indirectly market or promote the Franchised Business or, unless otherwise directed by Franchisor, in Franchisor's Reasonable Business Judgment, pay for media placements that may benefit or include any media market that includes Franchisee's Administrative Office or Operating Territory;
- (5) Franchisee agrees that the Brand Development Fund may be used to pay various costs and expenses of Franchisor for such reasonable salaries, wages, administrative costs and overhead as Franchisor may incur in activities reasonably related to the administration, activities and/or the brand awareness goals of the Brand Development Fund including expenses incurred by Franchisor for advertising, marketing, product and service testing, product and service development, maintenance, evaluation and monitoring of the Business Management Systems, upgrades to the System Website, development of Digital Media and creative development that is internally administered or prepared by Franchisor and other marketing activities made by Franchisor, provided, however, that salary expenses for Franchisor's personnel paid by the Brand Development Fund shall be commensurate with the amount of that time spent by such personnel on Brand Development Fund matters. Franchisor shall not use contributions to the Brand Development Fund to defray any of Franchisor's general operating expenses, except for such reasonable salaries, administrative costs and overhead as Franchisor may incur in activities reasonably related to the administration and activities of the Brand Development Fund and creation or conduct of its marketing programs including, without limitation, conducting market research, preparing advertising and marketing materials and collecting and accounting for contributions to the Brand Development Fund.
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 can be used for the development of Digital Media. Specifically, the fund may cover expenses the franchisor incurs for activities related to brand awareness goals, including the development of Digital Media that is internally administered or prepared by the franchisor.
This means that a portion of the mandatory Brand Development Fund fees that Deer Solution franchisees pay can be allocated to creating and maintaining the brand's online presence. Digital Media, as defined in the FDD, includes websites, social media platforms like Facebook, LinkedIn, X, Pinterest, Instagram, SnapChat, and YouTube, as well as internet-based directories.
However, the FDD also states that Deer Solution businesses owned by the franchisor or its affiliates are not required to contribute to the Brand Development Fund. Additionally, the franchisor has sole discretion over the strategic direction, creative concepts, and media placement of the fund's activities. While the franchisor may establish a council to provide guidance, the franchisor ultimately makes the final decisions regarding the fund's administration and marketing matters.