Are Deer Solution businesses owned by the franchisor required to contribute to the Advertising Cooperative?

According to Deer Solution's 2025 Franchise Disclosure Document, Deer Solution businesses owned by the franchisor or its affiliates are not required to contribute to the Advertising Cooperative if they are located within the geographic area of the designated Advertising Cooperative. This means that while franchisees are generally required to participate in and contribute to the Advertising Cooperative if their business is located within the cooperative's area, corporate-owned locations are exempt from this requirement.

This exemption for corporate-owned locations could impact the financial dynamics of the Advertising Cooperative. Franchisees might perceive this as unfair if they are mandated to contribute while corporate stores in the same area are not. The advertising cooperative is designed to administer marketing programs and media development for use by its members in local or regional marketing, all subject to the franchisor's review and approval.

It is important for prospective franchisees to understand how the Advertising Cooperative is funded and managed, and how the contributions are used to benefit all members, including the potential impact of corporate-owned stores not contributing. Franchisees should inquire about the number and location of corporate-owned stores within their region and the potential impact on the cooperative's budget and marketing strategies. Understanding the voting provisions and decision-making processes within the Advertising Cooperative is also crucial to ensure that franchisees have a voice in how their contributions are utilized.