When are Collections fees due for a Deer Solution franchisee?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
| Reporting Non-Compliance | $150 per occurrence | 14 days of invoice | Payable for failure to timely submit Royalty and Activity Reports, and other reports and financial statements as required under Franchise Agreement. |
|---|---|---|---|
| Operations Non-Compliance | $450 to $1,000 per occurrence | 14 days of invoice | Payable for failure to comply with operational standards as required and specified under Franchise Agreement, plus inspection and re- inspection costs incurred by us. |
| Payment Non-Compliance | $150 per occurrence | Payable for failure to timely pay, when due, a fee or payment due to us under the Franchise Agreement, plus interest, costs, and legal fees. | |
| Non-Compliance | Actual fees, costs, and expenses | On demand | Fees, costs, and expenses incurred by us as a result of your breach or non- compliance with the terms of your Franchise Agreement. |
| Legal Fees and Expenses | Costs and expenses | As incurred | This fee includes, but is not limited to, attorneys’ fees for any failure to pay amounts when due or failure to comply in any way with the Franchise Agreement. |
| Audit | Cost of audit | On demand | For costs incurred by us for each financial audit, provided the audit determines underreporting of 2% or greater during any designated audit period. Includes fees incurred by us including audit, legal, travel and reasonable accommodations. |
| Quality Assurance Audit | Actual costs incurred by us | As invoiced | Payable if we engage a third party to perform periodic quality assurance audits, including mystery shopper programs. |
| Management Service | 20% of Gross Sales, plus expenses | As invoiced | Payable if we elect to manage the Franchised Business due to death, disability, a failure by you to have the Franchised Business managed by an authorized Managing Owner or Manager, etc. |
| Collections | Actual fees, costs, and expenses | On demand | For costs and expenses incurred by us in collecting fees due to us, and/or to enforce the terms of the Franchise Agreement or a termination of the Franchise Agreement. Includes costs and expenses of re-inspections required by quality assurance audit. |
Source: Item 6 — OTHER FEES (FDD pages 14–19)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, Collections fees are due 'on demand.' These fees cover the costs and expenses Deer Solution incurs while collecting fees owed by the franchisee, enforcing the Franchise Agreement, or dealing with the termination of the Franchise Agreement. This includes the costs of re-inspections required by a quality assurance audit.
'On demand' typically means that Deer Solution can request immediate payment of these fees. This differs from other fees which may have payment schedules like '14 days of invoice' or 'as invoiced.' The franchisee should be prepared to pay these fees promptly upon receiving notice from Deer Solution.
This payment structure is important for prospective franchisees to understand, as it means that if Deer Solution incurs costs related to collecting overdue payments or enforcing the agreement, the franchisee will be responsible for reimbursing those costs immediately. This could create a financial strain if a franchisee is already struggling with cash flow. It is advisable to maintain open communication with Deer Solution to avoid situations that could lead to collection fees and to ensure prompt payment of all obligations to avoid additional financial burdens.