What is the definition of a 'Franchise Outlet' according to the Deer Solution FDD?

According to the 2025 Deer Solution Franchise Disclosure Document, a 'Franchise Outlet' is defined as a Deer Solution business that operates under a Franchise Agreement and is not a Company Owned Outlet. This distinction is important because the FDD often presents financial performance data separately for company-owned outlets and franchise outlets. This allows potential franchisees to better understand what they might expect to earn as a franchisee, versus the performance of outlets directly operated by Deer Solution.

Understanding this definition is crucial for interpreting the financial performance representations in Item 19 of the FDD. When reviewing the financial data, a prospective franchisee should pay close attention to whether the data pertains to company-owned outlets, franchise outlets, or both. This will help in forming realistic expectations about potential revenue and expenses.

Deer Solution also provides definitions for related terms such as 'New Franchise Outlet' and 'Operational Franchise Outlet,' which further refine how performance data is categorized and presented. A 'New Franchise Outlet' is one that opened and commenced operations for the first time during a specific calendar year. An 'Operational Franchise Outlet' is one that was open and in operation on or prior to the start of a particular calendar year. These definitions help clarify how Deer Solution classifies its outlets for financial reporting purposes, allowing for a more accurate analysis of performance trends.