What is the fee for Payment Non-Compliance under the Deer Solution franchise agreement?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
| Reporting Non-Compliance | $150 per occurrence | 14 days of invoice | Payable for failure to timely submit Royalty and Activity Reports, and other reports and financial statements as required under Franchise Agreement. |
|---|---|---|---|
| Operations Non-Compliance | $450 to $1,000 per occurrence | 14 days of invoice | Payable for failure to comply with operational standards as required and specified under Franchise Agreement, plus inspection and re- inspection costs incurred by us. |
| Payment Non-Compliance | $150 per occurrence | Payable for failure to timely pay, when due, a fee or payment due to us under the Franchise Agreement, plus interest, costs, and legal fees. |
Source: Item 6 — OTHER FEES (FDD pages 14–19)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, a franchisee may incur a Payment Non-Compliance fee. This fee is levied if a franchisee fails to make timely payments of any fees due to Deer Solution under the Franchise Agreement. The fee is $150 per occurrence.
In addition to the $150 fee, the franchisee is also responsible for covering interest, costs, and legal fees associated with the payment non-compliance. This means the total financial burden could significantly exceed the initial $150, depending on the extent of the delay and any legal actions Deer Solution might take to recover the unpaid amounts.
It is important for prospective Deer Solution franchisees to understand the importance of adhering to the payment schedule outlined in the Franchise Agreement to avoid these additional costs. Setting up systems for timely payments and maintaining open communication with Deer Solution regarding any potential payment issues can help franchisees avoid these fees and maintain a positive relationship with the franchisor.