Who determines the manner in which the Brand Development Fund is used for Deer Solution?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
of weekly Gross Sales to the Brand Development Fund. We may use the Brand Development Fund for market studies, research, service development, product development, testing, research studies, technology development, advertising and public relations studies or services, creative production and printing of advertising and marketing materials, advertising copy and commercials, tracking costs, agency fees, administrative costs, which may include reimbursement for direct administrative and personnel costs associated with advertising and public relations, and any other costs associated with the development, marketing and testing of advertising, marketing and public relations materials, and the purchase of media placement, advertising time and public relations materials in national, regional or other advertising and public relations media in a manner determined by us, in our discretion, to be in the best interest of the franchisees and the System. Our company and/or affiliate owned Deer Solution Businesses may but are not required to contribute to the Brand Development Fund. The Brand Development Fund will be required to maintain unaudited financial records detailing its expenditures and will make available to you (no more frequently than one time in any 12 month period) an unaudited accounting of how the monies contributed to the Brand Development Fund were spent each year. We are not required to segregate the Brand Development Fund from our general operating funds and we are not a fiduciary or trustee of the Brand Development Fund. The Brand Development Fund will not be used to directly promote your Deer Solution Business or the marketing area in which your Deer Solution Business will be located. (Franchise Agreement, Article 9.A.). We may utilize the Brand Development Fund to develop and test various media and technologies for potential utilization and/or improvement of the operations of Deer Solution Businesses and the marketing of Deer Solution Businesses. These technology developments and/or improvements may relate, among other things, to our website and to the interaction and potential enhancement of web offerings that may or may not be implemented on behalf of Deer Solution Businesses. You may or may not benefit from these technology developments and improvements. (Franchise Agreement, Article 9.A.).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 29–35)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the franchisor has the discretion to determine how the Brand Development Fund is used. The document states that Deer Solution may use the fund for various purposes, including market studies, research, service and product development, testing, advertising, public relations, and the creation and distribution of marketing materials. These activities can occur at the national, regional, or other levels.
Deer Solution emphasizes that these decisions are to be made in the best interest of both the franchisees and the overall Deer Solution system. The franchisor can use the Brand Development Fund to cover administrative and personnel costs related to advertising and public relations. The fund can also be used to develop and test different media and technologies to potentially improve the operations and marketing of Deer Solution businesses.
While Deer Solution businesses may or may not directly benefit from these technology developments, the franchisor retains control over how the Brand Development Fund is spent. The Brand Development Fund will not be used to directly promote a franchisee's Deer Solution Business or marketing area. The FDD states that as of December 31, 2024, Deer Solution collected $30,209.52 towards the Brand Development Fund, and of that amount, 5.8% was spent on advertising and marketing, 9.7% on consulting and fund administration, 64.9% on creative and content production, and 19.5% on marketing technology and digital infrastructure.