What costs does Deer Solution incur that are directly attributable to obtaining a contract?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that Franchisor, in Franchisor's Reasonable Business Judgment and sole discretion, may implement and require that Franchisee, at Franchisee's cost and expense, participate in utilizing the Sales and Support Center and Sales and Support Center Services designated by Franchisor and as may be modified by Franchisor from time to time. Franchisee agrees that a core and critical component to all Deer Solution Businesses and Franchisee's Deer Solution Business relates to and includes communications with customers and prospective customers, the scheduling and rescheduling of estimate appointments, the scheduling and rescheduling of service visits, responding to customer complaints and other customer communications. Franchisee agrees that Franchisee shall exclusively adopt and utilize only those Sales and Support Centers designated and approved by Franchisor and that Franchisee shall exclusively adopt and utilize only those Sales and Support Center Services designated by Franchisor of which Franchisor may be the sole and exclusive supplier. Franchisee shall pay for all costs and expenses charged to Franchisee for Sales and Support Center Services. Fees for Sales and Support Center Services shall, in Franchisor's Reasonable Business Judgment, be exclusively determined by Franchisor from time to time and may include fixed general overhead fees and variable fees related to contacts involving or potentially involving the Franchised Business including, but not limited to, an initial prospect fee related to a prospect that contacts a Sales and Support Center, estimate scheduling and rescheduling, service visit scheduling and rescheduling, and escalation fees responding to customer complaints and supplemental inquiries. The variable Sales and Support Center Fees shall not exceed 8.5% of weekly Gross Sales, provided that Franchisor reserves the right to charge per communication fees that will be charged each and every time a communication occurs so long as such fees do not exceed 8.5% of Franchisee's Gross Sales in any weekly Accounting Period. Franchisee's participation and use of the Sales and Support Center is mandatory, and Franchisee's payment of Sales and Support Center Fees is mandatory.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
The 2025 Deer Solution Franchise Disclosure Document outlines the franchisee's mandatory participation in and payment for the Sales and Support Center Services. These services, determined by Deer Solution, are a core component of all Deer Solution businesses and include communications with customers and prospective customers, scheduling appointments, and responding to customer complaints.
Deer Solution determines the fees for these services, which may include fixed overhead fees and variable fees related to contacts involving the franchised business. These variable fees can include an initial prospect fee, estimate scheduling, service visit scheduling, and escalation fees for customer complaints. The variable Sales and Support Center Fees cannot exceed 8.5% of weekly Gross Sales. However, Deer Solution can charge per communication fees as long as they do not exceed 8.5% of the franchisee's Gross Sales in any weekly Accounting Period.
This means that a Deer Solution franchisee will incur costs for the Sales and Support Center Services, which are directly related to obtaining and maintaining customer contracts. These costs are mandatory and can fluctuate based on the volume of customer interactions and the franchisee's gross sales. Prospective franchisees should carefully consider these ongoing costs and how they might impact their profitability.