Are Deer Solution company-owned businesses required to contribute to the Brand Development Fund?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Our company and/or affiliate owned Deer Solution Businesses may but are not required to contribute to the Brand Development Fund.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 29–35)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, company-owned Deer Solution businesses are not mandated to contribute to the Brand Development Fund. While franchisees must contribute a weekly sum not exceeding 3% of weekly Gross Sales to the Brand Development Fund, the obligation does not extend to company-owned locations.
The Brand Development Fund is used for various marketing and development purposes, including market studies, advertising, and technology development. The franchisor has the discretion to determine how the fund is used, aiming to benefit both franchisees and the overall Deer Solution system. The fund is not used to directly promote individual franchise locations but may support the broader marketing efforts of Deer Solution businesses.
This distinction in contribution requirements could be seen as a potential advantage for Deer Solution's company-owned operations, as they are not obligated to allocate a percentage of their gross sales to the fund. However, franchisees may view this as inequitable since they are required to contribute. Franchisees have the right to receive an unaudited accounting of how the Brand Development Fund's monies were spent each year, but no more than once in any 12 month period.