What does the estimated initial investment to open a single territory for Deer Solution exclude?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Deer Solution Business.
Note 17: About Your Estimated Initial Investment – This is an estimate of the initial start-up expenses for a Deer Solution Business. We have based these estimates on the experiences of our affiliate in developing a Deer Solution Business. These estimates do not include interest and financing charges that you may incur and they do not include management level compensation payable to you or your owners. If you increase the geographic size of your Operating Territory by adding Additional Territories your costs will be higher. These estimates are for a Deer Solution Business within a single Territory and the operation of a single Deer Solution authorized service vehicle.
B. Multiple Territories
YOUR ESTIMATED INITIAL INVESTMENT
| Type of Expenditure | Amount | Method of Payment | When Due |
|---|---|---|---|
| To Whom Payment is Made | |||
| Initial Franchise Fee (Note 1) | $64,500 – $214,500 | Lump sum | When Franchise Agreement is signed with Multi-Franchise Addendum |
| Estimated Initial Investment to Open Single Territory (Note 2) | $47,300 – $99,500 | Estimated Initial Investment is based on estimate contained in Table A, above, of this Item 7, for a single Territory, but less the Initial Franchise Fee reported in Table A. | |
| Total Estimate | $111,800 – $314,000 | ||
| (Note 3) |
Explanatory Notes to Item 7 for Multiple Territories
Note 1: Initial Franchise Fee – The Initial Franchise Fee for an operating territory comprised of a single Territory is $49,500.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 20–23)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the estimated initial investment to open a single territory does not include interest and financing charges that a franchisee may incur. Additionally, it excludes management-level compensation payable to the franchisee or their owners. The estimates provided are specifically for a Deer Solution business operating within a single territory and utilizing a single Deer Solution authorized service vehicle.
It is important for prospective franchisees to understand these exclusions when planning their initial investment. The initial investment for a single territory ranges from $96,800 to $149,000. Franchisees should factor in potential interest and financing charges if they plan to finance any portion of their start-up costs. They should also consider their own salary or compensation, which is not included in the estimated additional funds for the first three months of operation.
Deer Solution bases these estimates on the experiences of its affiliate in developing a Deer Solution business. However, the document states that increasing the geographic size of the operating territory by adding additional territories will result in higher costs. The additional funds estimate of $11,100 to $41,400 covers operating expenses like employee salaries, inventory, rent, and utilities for the initial three-month period, but it's crucial to recognize that this is just an estimate, and actual costs may vary depending on the business's sales and performance.