How does Deer Solution determine the 'Accounting Period' for franchisees?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
"Accounting Period" refers to and means the period of time selected and determined by Franchisor for the required measurement and reporting of financial information and payment of financial obligations by Franchisee. The applicable measurement period will be determined by Franchisor from time to time with respect to Franchisee's obligations to report financial information and data to Franchisor and Franchisee's payment of all fees, including, and other obligations under this Agreement. The respective "Accounting Period" shall be those Franchisor designated times, whether, instantly on a recurring basis upon receipt of Gross Sales, weekly, monthly, or otherwise, as designated by Franchisor, with all such Accounting Periods automatically commencing on the earlier of the (a) Scheduled Business Commencement Date, or (b) the Actual Business Commencement Date of the Franchised Business and, continuing, throughout the Term of this Agreement. Unless otherwise designated by Franchisor at any time, unless otherwise specified in this Agreement, the Accounting Period shall be a weekly period for each and every week throughout the Term of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the 'Accounting Period' is determined by Deer Solution for measuring and reporting financial information, as well as for franchisees to meet their financial obligations. Deer Solution has the authority to designate the applicable measurement period for franchisees to report financial data and fulfill payment obligations, including fees.
The accounting period commences on the earlier of the Scheduled Business Commencement Date or the Actual Business Commencement Date and continues throughout the term of the Franchise Agreement. Unless Deer Solution specifies otherwise, the standard accounting period is weekly. This means franchisees are generally expected to measure, report, and remit payments on a weekly basis.
This weekly accounting period has significant implications for franchisees, requiring them to maintain accurate and up-to-date financial records to ensure timely reporting and payments. Franchisees should be prepared to manage their finances on a weekly cycle and understand that Deer Solution retains the right to modify the accounting period if deemed necessary. It is important for prospective franchisees to clarify any uncertainties regarding the accounting period and reporting requirements with Deer Solution before signing the Franchise Agreement.