What is the 'Due Date' referring to in the context of Deer Solution Royalty Fees?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Payment and Due Date: 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 in which case Royalty Fee payments shall be paid by Franchisee to Franchisor weekly by ACH, electronic funds transfer, or as otherwise designated by Franchisor and shall be due on the Tuesday of each weekly Accounting Period for the immediately preceding week, and each week thereafter throughout the entire Term of this Agreement, or such other specific day of the week that Franchisor designates from time to time or for such other period that Franchisor may designate (the "Due Date").
Tax Obligations: If any federal, state or local tax, other than an income tax, is imposed on the Royalty Fee paid by Franchisee to Franchisor that, Franchisor cannot directly and, dollar for dollar, offset against taxes required to be paid by Franchisor under any applicable federal or state laws, Franchisee must compensate Franchisor in the manner prescribed by Franchisor so that the net amount or net rate received by Franchisor for the Royalty Fee is not less than that which has been established by this Agreement and which was due to Franchisor on the effective date 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 'Due Date' refers to the date by which royalty fee payments must be submitted to Deer Solution. The royalty fee can be calculated and paid in one of two ways, according to Deer Solution's election: either instantly on a per-transaction basis, or on a weekly basis for each weekly accounting period.
If Deer Solution chooses the weekly payment option, the royalty fee is due on the Tuesday of each weekly accounting period for the immediately preceding week. This payment is to be made via ACH, electronic funds transfer, or as otherwise designated by Deer Solution. The 'Due Date' can also be another specific day of the week or for another period that Deer Solution may designate from time to time.
It is important to note that if any federal, state, or local tax (other than income tax) is imposed on the royalty fee, and Deer Solution cannot directly offset this tax, the franchisee must compensate Deer Solution. This compensation ensures that Deer Solution receives the net amount or rate for the royalty fee as established in the agreement.