What events trigger the start of the 'Accounting Period' for a Deer Solution franchise?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
"Accounting Period" refers to and means the period of time selected and determined by Franchisor for the required measurement and reporting of financial information and payment of financial obligations by Franchisee. The applicable measurement period will be determined by Franchisor from time to time with respect to Franchisee's obligations to report financial information and data to Franchisor and Franchisee's payment of all fees, including, and other obligations under this Agreement. The respective "Accounting Period" shall be those Franchisor designated times, whether, instantly on a recurring basis upon receipt of Gross Sales, weekly, monthly, or otherwise, as designated by Franchisor, with all such Accounting Periods automatically commencing on the earlier of the (a) Scheduled Business Commencement Date, or (b) the Actual Business Commencement Date of the Franchised Business and, continuing, throughout the Term of this Agreement. Unless otherwise designated by Franchisor at any time, unless otherwise specified in this Agreement, the Accounting Period shall be a weekly period for each and every week throughout the Term of this Agreement.
"Actual Business Commencement Date" refers to and means the date of the grand opening of the Franchised Business and/or the date upon which the Franchised Business is open to the public.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the 'Accounting Period' is the timeframe the franchisor selects to measure and report financial information, as well as to determine payment obligations for the franchisee. The Accounting Period for a Deer Solution franchise automatically starts on the earlier of two dates: the Scheduled Business Commencement Date or the Actual Business Commencement Date. This period continues throughout the entire term of the Franchise Agreement. Unless Deer Solution designates otherwise, the Accounting Period is weekly.
The 'Actual Business Commencement Date' is defined as the date of the grand opening or the date the franchise is open to the public. This means that even if the franchisee's 'Scheduled Business Commencement Date' is set for a future time, the franchisee's financial reporting and payment obligations to Deer Solution begin as soon as the business opens its doors, even for a soft opening.
For a prospective Deer Solution franchisee, this definition is important because it clarifies when the franchisee's financial obligations to Deer Solution begin. Franchisees need to be prepared to track and report financial data, and make payments, from the moment their Deer Solution business begins operating, even if that is before their initially planned launch date. Understanding this definition helps franchisees plan their finances and operational timelines accordingly, ensuring compliance with the franchise agreement from day one.