factual

What is the fee for Reporting Non-Compliance under the Deer Solution franchise agreement?

Deer_Solution Franchise · 2025 FDD

Answer from 2025 FDD Document

Total Territories Purchased Initial Franchise Fee per Territory Cumulative Fee (Includes First Territory)
1 $49,500 $49,500
2 $32,250 $64,500
3 $26,500 $79,500
4 $23,625 $94,500
5 $21,900 $109,500
6 $20,750 $124,500
7 $19,928.57 $139,500
8 $19,312.50 $154,500
9 $18,833.33 $169,500
10 $18,450 $184,500
11 $18,136.36 $199,500
12 $17,875 $214,500

Subject to market type, availability, and our discretion, if you elect to enter multiple Franchise Agreements, we will apply the same Territory discounts as set forth in the above table. The discounts are only applicable for Franchise Agreements signed at the same time.

Equipment

You must purchase certain equipment from us, our affiliate, or our designated suppliers. We estimate that the cost of your equipment purchases will range between $600 to $1,300. Your equipment costs will be fully earned by us upon payment and are non-refundable.

Opening Inventory

You must purchase your opening inventory of certain System Supplies from us or our affiliate. We estimate that your initial opening inventory of System Supplies that you must purchase from us or our affiliates will

range between $3,700 to $4,400. Your initial opening inventory fees will be fully earned by us upon payment and are non-refundable.

Deer Solution Signage

You must purchase the signage for your Deer Solution Business from us, our affiliate, or our designated suppliers. We estimate that the cost of your signage will range between $900 to $2,800. Your signage costs will be fully earned by us upon payment and are non-refundable.

Computer, Software, and Business Management System

Prior to opening your Deer Solution Business, you must purchase certain computer, software, and business management systems as designated by us, from us, our affiliate, or our designated suppliers. We estimate that the cost of the computer, software, and business management systems will range between $1,400 to $2,800. Your computer, software, and business management systems costs will be fully earned by us upon payment and are non-refundable.

Start-Up Marketing

Prior to the opening of your Deer Solution Business and during the first three months following the opening, you must spend a minimum of $15,000 on the marketing of your Franchised Business. You must submit your start-up marketing plan to us for our pre-approval. At least $10,000 of the start-up marketing expense must be paid to our affiliate, R3volution Brands Inc., to conduct the start-up online marketing on behalf of the Franchised Business. The start-up marketing costs will be fully earned by us upon payment and are nonrefundable.

Printing, Stationery, and Office Supplies

You must purchase your Deer Solution printing, stationery, and office supplies from us, our affiliate, or our designated suppliers. We estimate that your printing, stationery, and office supplies expense will range between $300 to $500. This expense will be fully earned by us upon payment and is non-refundable.

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ITEM 6 OTHER FEES

| 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. |

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 Reporting Non-Compliance fee of $150 per occurrence. This fee is charged if the franchisee fails to submit Royalty and Activity Reports, as well as other reports and financial statements, in a timely manner as required by the Franchise Agreement.

The fee is due within 14 days of the invoice date. This means that Deer Solution franchisees must ensure they submit all required reports and financial statements on time to avoid incurring this additional cost.

Franchisees should establish internal controls and reminders to ensure timely submission of all required documents. Failure to do so could result in repeated $150 charges, impacting the profitability of the Deer Solution franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.