Which Disclosure Document items cover the Deer Solution franchisee's advertising obligations?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING]
Digital Media and Website All digital media and marketing must be approved by us.
We will designate for your Operating Territory information about your Deer Solution Business on the www.deersolution.com webpage or such other websites as we may designate for the System. (Franchise Agreement, Article 9);
Brand Development Fund We may control and administer a brand development fund (the "Brand Development Fund") (Franchise Agreement, Article 9.A.).
As disclosed in Item 6 of this Disclosure Document, you must contribute a weekly sum not to exceed 3% 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.
- Local and Regional Advertising Cooperative – We possess the exclusive right to authorize, establish, designate and de-authorize a local or regional advertising cooperative within those markets that we designate. We will exclusively determine the geographic and other boundaries constituting each respective
cooperative and factors that we will consider include media markets including print, television and digital. If we establish a cooperative within a market that includes your Deer Solution Business you must contribute to the cooperative in such amounts and frequency as determined by the cooperative. Members of the cooperative will be responsible for administering the cooperative, including determining the amount of contributions, marketing expenditures and allocations. However, we may require that cooperative decisions be made based on approval of a simple majority of franchisee members based on one vote per Deer Solution Business located and a quorum of not less than 25% of the designated franchisee cooperative members. If a cooperative exceeds nine franchisee members, we may require that the cooperative establish formal governing documents. Each cooperative must prepare annual unaudited financial statements that must be provided to each cooperative member for review. We reserve the right to form, change, dissolve, or merge any advertising cooperative. If we elect to form a local or regional cooperative or if a cooperative already exists as to the area of your Deer Solution Business, you will be required to participate in the cooperative in accordance with the provisions of our operations manual which we may supplement and modify from time to time (Franchise Agreement, Article 9).
As of the Issuance Date of this Disclosure Document we have not established any local or regional advertising cooperatives but reserve the right to do so in the future. You will not be required to contribute more than $10,000 per Territory per year;
[Item 23: RECEIPTS]
9.G. ADVERTISING COOPERATIVE
At all times Franchisor, in Franchisor's Reasonable Business Judgment, possesses the right to authorize, establish, designate and de-authorize a local or regional advertising cooperative within those markets that Franchisor designates (the "Advertising Cooperative"). Franchisee agrees that Franchisor possesses the sole and exclusive right to designate any geographic area in which two or more Deer Solution Business franchises are located as a region for the purpose of establishing an Advertising Cooperative. If Franchisee's Deer Solution Business or Operating Territory is located within the geographic area of an Advertising Cooperative, franchisee must participate in and contribute to the Advertising Cooperative. Franchisee agrees to the following:
- (1) If Franchisor previously instituted or, in the future, institutes an Advertising Cooperative that includes, in whole or in part, Franchisee's Operating Territory or Franchisee's Deer Solution Business Location, Franchisee shall participate in and make such on-going financial contributions to the Advertising Cooperative, as determined by the Advertising Cooperative;
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD page 28)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, Item 11 and Item 23 outline the franchisee's advertising obligations. Item 11 discusses the Brand Development Fund, where franchisees may be required to contribute up to 3% of weekly Gross Sales. These funds can be used for various advertising and marketing purposes at the franchisor's discretion. Additionally, Item 11 mentions the potential for local and regional advertising cooperatives, where franchisees may be required to contribute, up to $10,000 per Territory per year, to support local advertising efforts.
Item 23 further details the advertising cooperative, emphasizing that if a Deer Solution franchisee's business is located within the geographic area of an Advertising Cooperative, they must participate in and contribute to it. The franchisor retains the right to authorize, establish, designate, and de-authorize these cooperatives. The franchisor may also set foundational and organizational requirements, including voting provisions.
These items collectively specify the financial obligations and the franchisor's control over advertising and marketing initiatives. A Deer Solution franchisee needs to be aware of these potential costs and the franchisor's authority in managing advertising strategies, both at the brand level and within local cooperatives. Understanding these obligations is crucial for budgeting and planning marketing efforts.