What costs are included in the Non-Compliance fee 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. |
Source: Item 6 — OTHER FEES (FDD pages 14–19)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the Non-Compliance fee covers the actual fees, costs, and expenses incurred by Deer Solution as a result of a franchisee's breach or non-compliance with the terms of the Franchise Agreement. This fee is payable on demand.
In addition to the general Non-Compliance fee, Deer Solution also lists other non-compliance fees for specific situations. For Reporting Non-Compliance, a franchisee will be charged $150 per occurrence for failing to submit Royalty and Activity Reports, as well as other required reports and financial statements, within 14 days of the invoice. Operations Non-Compliance incurs a fee ranging from $450 to $1,000 per occurrence for failing to meet operational standards, along with inspection and re-inspection costs. Payment Non-Compliance results in a $150 fee per occurrence for failing to make timely payments, plus interest, costs, and legal fees.
These fees highlight the importance of adhering to the Franchise Agreement and maintaining operational and reporting standards. A Deer Solution franchisee should ensure they understand all requirements to avoid these additional costs. The fees are not only penalties but also serve to cover Deer Solution's expenses resulting from the franchisee's non-compliance.