Who determines if Deer Solution institutes, implements, maintains, delegates, and administers a brand development fund?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
public brand recognition and awareness of the Licensed Marks. The Brand Development Fund will not be utilized to directly or indirectly market or promote the Franchised Business or, unless otherwise directed by Franchisor, in Franchisor's Reasonable Business Judgment, pay for media placements that may benefit or include any media market that includes Franchisee's Administrative Office or Operating Territory;
- (5) Franchisee agrees that the Brand Development Fund may be used to pay various costs and expenses of Franchisor for such reasonable salaries, wages, administrative costs and overhead as Franchisor may incur in activities reasonably related to the administration, activities and/or the brand awareness goals of the Brand Development Fund including expenses incurred by Franchisor for advertising, marketing, product and service testing, product and service development, maintenance, evaluation and monitoring of the Business Management Systems, upgrades to the System Website, development of Digital Media and creative development that is internally administered or prepared by Franchisor and other marketing activities made by Franchisor, provided, however, that salary expenses for Franchisor's personnel paid by the Brand Development Fund shall be commensurate with the amount of that time spent by such personnel on Brand Development Fund matters. Franchisor shall not use contributions to the Brand Development Fund to defray any of Franchisor's general operating expenses, except for such reasonable salaries, administrative costs and overhead as Franchisor may incur in activities reasonably related to the administration and activities of the Brand Development Fund and creation or conduct of its marketing programs including, without limitation, conducting market research, preparing advertising and marketing materials and collecting and accounting for contributions to the Brand Development Fund. Franchisor may spend in a fiscal year an amount greater or less than the aggregate contributions of all Deer Solution Businesses to the Brand Development Fund in that year;
- (6) Franchisee agrees to participate in all advertising, marketing, promotions, research, and public relations programs instituted by the Brand Development Fund;
- (7) Deer Solution Businesses owned by Franchisor or Franchisor's affiliates are not required to pay any Brand Development Fund Fee or contribute to or make any contribution to the Brand Development Fund;
- (8) Franchisee and Franchisor acknowledge and agree that (a) the Brand Development Fund is not a trust, (b) Franchisor is not a trustee or fiduciary of the Brand Development Fund, and (c) Franchisor may deposit and maintain any and all funds of the Brand Development Fund Fee in Franchisor's general accounts. Brand Development Fund Fees are not required to be segregated from other assets or accounts of Franchisor. The Brand Development Fund is not required to expend Brand Development Fund Fees in the year that they are collected and the Brand Development Fund may borrow from Franchisor or other lenders at standard commercial interest rates to cover deficits of the Brand Development Fund, and Franchisor may cause the Brand Development Fund to invest any surplus for future use by the Brand Development Fund. All interest earned on monies
contributed to the Brand Development Fund will be used to pay costs of the Brand Development Fund before other assets of the Brand Development Fund are expended. A summary statement of monies collected and costs incurred by the Brand Development Fund for Franchisor's immediately preceding fiscal year shall be made available to Franchisee upon Franchisee's written request. Franchisor will have the right to cause the Brand Development Fund to be incorporated or operated through an entity separate from Franchisor at such time as Franchisor deems appropriate, and such successor entity shall have all rights and duties of Franchisor pursuant to this Article 9.A.(8);
- (9) Although Franchisor will endeavor to utilize the Brand Development Fund to develop advertising and marketing materials and programs, Franchisor undertakes no obligation to ensure that expenditures by the Brand Development Fund in or affecting any geographic area are proportionate or equivalent to the contributions to the Brand Development Fund by Deer Solution Businesses operating in that geographic area or that any Deer Solution Businesses will benefit directly or in proportion to its contribution to the Brand Development Fund from the development of advertising and marketing materials. Franchisor may use the Brand Development Fund to promote or benefit any type of Deer Solution Businesses in the System. Franchisor may use the Brand Development Fund to promote or benefit Deer Solution Businesses located within a particular region of the United States. Franchisee agrees that Franchisee's failure to derive any such benefit will not serve as a basis for a reduction or elimination of its obligation to contribute to the Brand Development Fund.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the franchisor has the authority to institute, implement, maintain, delegate, and administer the Brand Development Fund. The franchisee is obligated to participate in all advertising, marketing, promotions, research, and public relations programs initiated by the Brand Development Fund. Deer Solution businesses owned by the franchisor or its affiliates are not required to contribute to the Brand Development Fund.
The Brand Development Fund is not a trust, and the franchisor is not considered a trustee or fiduciary. The franchisor can deposit and maintain the Brand Development Fund fees in its general accounts without segregating them from other assets. While Deer Solution aims to use the Brand Development Fund for advertising and marketing, it is not obligated to ensure that expenditures in any geographic area are proportionate to the contributions from Deer Solution businesses in that area. The franchisor can use the Brand Development Fund to promote any type of Deer Solution business within the system or in a specific region of the United States.
Deer Solution, in its reasonable business judgment, may establish a council to provide guidance on the administration of the Brand Development Fund and marketing matters. This council serves only in an advisory capacity, and the franchisor selects its members, who may include employees of the franchisor, franchisees, and third parties. This structure gives Deer Solution significant control over the Brand Development Fund and its usage, which is a common practice in franchising, allowing the franchisor to manage brand consistency and marketing strategies across the franchise system.