What is the definition of 'Gross Sales' for a Deer Solution franchise?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 3: Gross Sales – "Gross Sales" means the total dollar sales from all business and customers of your Deer Solution Business and includes the total gross amount of revenues and sales from whatever source derived, whether in form of cash, credit, agreements to pay or other consideration including the actual retail value of any goods or services traded, borrowed, or received by you in exchange for any form of non-money consideration (whether or not payment is received at the time of the sale), from or derived by you or any other person or Corporate Entity from business conducted or which started in, on, from or through your Deer Solution Business and/or your operating territory, whether such business is conducted in compliance with or in violation of the terms of the Franchise Agreement. Gross Sales include the total gross amount of revenues and sales from whatever source derived from and/or derived by you including, any person and/or Corporate Entity acting on your behalf, from business conducted within and/or outside your operating territory that is related to your Deer Solution Business and/or a competitive business located and/or operated within your operating territory, outside your operating territory, and/or otherwise. Gross Sales do not include (a) sales taxes that you collect and remit to the proper taxing authority, and (b) authorized promotional discounts that you provide to customers.
Source: Item 6 — OTHER FEES (FDD pages 14–19)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, Gross Sales are defined as the total dollar sales from all business and customers of your Deer Solution Business. This includes all revenues and sales, regardless of the source, whether in cash, credit, or other forms of consideration. It also includes the retail value of any goods or services traded, borrowed, or received in exchange for non-monetary consideration, regardless of when payment is received. This definition extends to revenues and sales derived by the franchisee or any person or entity acting on their behalf, from business conducted within or outside the operating territory, related to the Deer Solution Business or a competitive business located within the operating territory.
For a prospective Deer Solution franchisee, this definition is crucial because several fees are calculated as a percentage of Gross Sales. These include the royalty fee, which is 8% of weekly Gross Sales, the Brand Development Fund Fee, which is currently 2% of weekly Gross Sales (up to 3%), and the Sales and Support Center Fee, which is currently 6.5% of weekly Gross Sales (up to 8.5%). Additionally, a Professional Referral Fee of 10% of ongoing Gross Sales from referred leads is applicable. Understanding what constitutes Gross Sales ensures accurate calculation and payment of these fees.
However, the FDD also specifies exclusions from Gross Sales. These exclusions include sales taxes that the franchisee collects and remits to the proper taxing authority, as well as authorized promotional discounts provided to customers. This distinction is important for franchisees to accurately calculate their Gross Sales and avoid overpayment of fees.
Deer Solution franchisees should pay close attention to this definition and ensure they accurately track and report all sales and revenues. Failure to properly report Gross Sales could lead to audits and potential penalties, as the franchisor can conduct financial audits if they suspect underreporting of 2% or greater during any designated audit period, with the franchisee bearing the cost of the audit if underreporting is confirmed.