How does Deer Solution determine if a franchised business meets operational standards through inspections or evaluations?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
oving or disapproving of Franchisee requests related to marketing materials and Digital Media that may be used to market the Franchised Business; and
- (7) Establishing and communicating System standards and requirements in the form of the Operations Manual and, as Franchisor, in Franchisor's sole discretion.
4.C. OPERATIONS MANUAL
Franchisor shall provide Franchisee with access to the Operations Manual. The Operations Manual contains, as designated and determined by Franchisor, mandatory and, as applicable, suggested specifications, standards, and operating procedures that Franchisor prescribes for Deer Solution Businesses. Franchisee shall operate the Franchised Business in strict accordance with the standards, specifications, and requirements set forth in the Operations Manual as, such standards, specifications, and requirements including, but not limited to, the Approved Services and Products, System Supplies, and, authorized and designated suppliers, as of the Effective Date of this Agreement, and, as they may be supplemented, modified, changed, and/or replaced in the future and, from time to time, by Franchisor, in Franchisor's Reasonable Business Judgment. Franchisee shall keep and maintain the confidentiality of the Operations Manual and shall keep and maintain all files, data and information contained in the Operations Manual in a secure location and/or in a protected confidential state and, as otherwise directed by Franchisor. The master copy and official version of the Operations Manual is and shall be the copy and/or version maintained and designated by Franchisor in Franchisor's ordinary course of business.
Franchisor shall provide Franchisee with reasonable notice of modifications and changes made to the Operations Manual and, such notice may take form of electronic communications including emails and, if the Operations Manual is maintained on an online web based platform, notifications within said platform. Franchisor shall provide Franchisee with a reasonable period of time, as determined by Franchisor, in Franchisor's Reasonable Business Judgment, to implement change and modifications to the as set forth in the Operations Manual. Without limitation to the foregoing, Franchisee may only offer and sell the Approved Services and Products and utilize the System Supplies as designated by Franchisor, in Franchisor's Reasonable Business Judgment, in the Operations Manual and, in accordance with the terms, specifications and requirements set forth in the Operations Manual and as Franchisor may supplement and modify the Operations Manual from time to time or, as Franchisor may otherwise designate in writing.
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ARTICLE 5 FEES
5.A. INITIAL FRANCHISE FEE
Upon execution of this Agreement Franchisee shall pay to Franchisor a non-recurring initial franchisee fee (the "Initial Franchise Fee") of $49,500 for an Operating Territory comprising a single Territory. If Franchisee's Operating Territory is supplemented with Additional Territories, the Initial Franchise Fee shall be increased and shall be the amount set forth in Schedule 2 of this Agreement. The Initial Franchise Fee is fully earned by Franchisor upon execution of this Agreement and is not refundable.
5.B. ROYALTY FEES
Royalty Fees: Throughout the Term of this Agreement, Franchisee shall pay to Franchisor a continuing weekly non-refundable royalty fee (the "Royalty Fee") in an amount equal to 8% (the "Royalty Rate") of Franchisee's weekly Gross Sales. The Royalty Fee shall be calculated and, at the election of Franchisor and as shall be determined by Franchisor, shall be payable to Franchisor, either: (a) instantly and continuously, on a per transaction / per receipt basis on each and every dollar of Gross Sales related to the Franchised Business that is received and/or processed by Franchisor, Franchisor's affiliates, Franchisor approved and designated third party vendors, and/or by Franchisee; or (b) a weekly basis for each respective weekly Accounting Period. During any Renewal Term, the Royalty Fee shall be determined by Franchisor but shall not be less than the Royalty Fee and Royalty Rate set forth in this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, franchisees must operate their Deer Solution business in strict accordance with the standards, specifications, and requirements set forth in the Operations Manual. This manual contains mandatory and suggested operating procedures that Deer Solution prescribes for its businesses. Franchisees are required to keep the Operations Manual confidential and secure, and the master copy is maintained by Deer Solution.
Deer Solution will provide franchisees with reasonable notice of any modifications or changes to the Operations Manual, potentially through electronic communications or an online platform. Franchisees are given a reasonable period of time to implement these changes. Franchisees are only allowed to offer and sell approved services and products and use system supplies as designated by Deer Solution in the Operations Manual.
Furthermore, the Deer Solution business must be operated within the designated operating territory from an approved administrative office. Franchisees must exclusively offer and sell approved services and products according to Deer Solution's standards, ensuring that these services are provided by trained employees or owners. The business must also exclusively use and maintain system supplies in the quantities specified by Deer Solution, purchasing these supplies only from approved suppliers. The Deer Solution business must be managed by the franchisee or, if the franchisee is a corporate entity, by the managing owner. The business must also maintain all necessary licenses and permits and operate in conformity with the standards and requirements set forth in the Operations Manual.