In establishing a council for the Brand Development Fund, what judgment does Deer Solution use?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
- (10) Franchisor, in Franchisor's Reasonable Business Judgment, may establish a council to provide guidance respecting the administration of the Brand Development Fund and marketing matters concerning the Brand Development Fund. The council shall only serve in an advisory capacity and Franchisor shall select members of the council which may be comprised of employees of Franchisor, Franchisor, franchisees of the System and third parties.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, Deer Solution may establish a council to provide guidance on the Brand Development Fund and marketing matters, using their reasonable business judgment. This council serves only in an advisory capacity.
Deer Solution has the discretion to select the members of this council, which may include Deer Solution employees, franchisees, and third parties. This means that while franchisees may have some input through the council, Deer Solution ultimately makes the decisions regarding the Brand Development Fund.
As the council is purely advisory, Deer Solution is not obligated to follow its guidance. This structure gives Deer Solution flexibility in managing the Brand Development Fund and marketing strategies, but it also means that franchisees have limited direct control over how their contributions are spent. Prospective franchisees should consider this when evaluating the level of influence they will have on marketing decisions.