How does Deer Solution define a 'New Franchise Outlet' for a particular Calendar Year?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
- (m) New Franchise Outlet means, as to a particular Calendar Year, a Franchise Outlet that for the first time opened and commenced operations during the Calendar Year.
For example, if a Franchise Outlet first opened for business in February 2023, as to the 2023 Calendar Year, the Franchise Outlet would qualify as a New Franchise Outlet and not as an Operational Franchise Outlet, see definition below.
If this Franchise Outlet remained in operation throughout the 2024 Calendar Year, it would qualify as an Operational Franchise Outlet during the 2024 Calendar Year.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 45–52)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, a 'New Franchise Outlet' is defined relative to a specific calendar year. It refers to a franchise location that first opened and began operations during that particular calendar year.
For instance, if a Deer Solution franchise opened in February 2023, it would be considered a 'New Franchise Outlet' for the 2023 calendar year. However, if that same franchise remained open and operational throughout 2024, it would then be classified as an 'Operational Franchise Outlet' for the 2024 calendar year. This distinction is important for Deer Solution's reporting and analysis of financial performance, as new outlets may have different performance characteristics than established ones.
This definition helps prospective franchisees understand how Deer Solution categorizes its outlets for financial reporting purposes. It clarifies that the 'new' designation is temporary, applying only to the year in which the franchise first opens. This distinction likely impacts the financial data presented in Item 19, as new franchises may have different revenue and expense patterns compared to those that have been operating for a longer period.