Are all fees described in Item 6 of the Deer Solution FDD recurring?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
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| 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. | |
| Non-Compliance | Actual fees, costs, and expenses | On demand | Fees, costs, and expenses incurred by us as a result of your breach or non- compliance with the terms of your Franchise Agreement. |
| Legal Fees and Expenses | Costs and expenses | As incurred | This fee includes, but is not limited to, attorneys’ fees for any failure to pay amounts when due or failure to comply in any way with the Franchise Agreement. |
| Audit | Cost of audit | On demand | For costs incurred by us for each financial audit, provided the audit determines underreporting of 2% or greater during any designated audit period. Includes fees incurred by us including audit, legal, travel and reasonable accommodations. |
| Quality Assurance Audit | Actual costs incurred by us | As invoiced | Payable if we engage a third party to perform periodic quality assurance audits, including mystery shopper programs. |
| Management Service | 20% of Gross Sales, plus expenses | As invoiced | Payable if we elect to manage the Franchised Business due to death, disability, a failure by you to have the Franchised Business managed by an authorized Managing Owner or Manager, etc. |
| Collections | Actual fees, costs, and expenses | On demand | For costs and expenses incurred by us in collecting fees due to us, and/or to enforce the terms of the Franchise Agreement or a termination of the Franchise Agreement. Includes costs and expenses of re-inspections required by quality assurance audit. |
| NSF Check Fee of Failed Electronic Fund Transfer | $50 per violation or the maximum amount allowed by law, whichever is greater | As incurred | Payable if your bank account possesses insufficient funds and/or fails to process a payment or transfer related to a fee due from you to us. |
| Indemnification | Actual cost incurred by us | As incurred | The amount payable is the amount of any claim, liability, or loss we incur from your Franchised Business. |
| Post-Termination or | Costs and expenses | As incurred | The amount payable is the amount of |
| Post-Expiration | any claim, liability, or loss we incur | ||
| Expenses | from your Franchised Business. | ||
| Testing or Supplier Approval Fee | Actual fees, costs, and expenses | Within 14 days of invoice | You must pay us the costs incurred by us to review and evaluate a potential supplier, product, or service that you submit to us for approval. |
| Operations Manual | $500 | As incurred | Payable in the event we are required |
| Replacement Fee | to replace your operations manual. | ||
| Relocation | Costs and expenses | As incurred | Payable if we approve your relocation request, but prior to execution of updated agreement and authorization. |
| Transfer | 50% of our then current franchise fee | On demand | Payable if we approve your transfer request, but prior to execution of final transfer agreements and authorization. |
| Renewal | 10% of our then current franchise fee | On signing renewal Franchise Agreement | Payable if we approve your renewal request and upon signing our then current Franchise Agreement. |
| 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. | |
| Non-Compliance | Actual fees, costs, and expenses | On demand | Fees, costs, and expenses incurred by us as a result of your breach or non compliance with the terms of your Franchise Agreement. |
| Legal Fees and Expenses | Costs and expenses | As incurred | This fee includes, but is not limited to, attorneys' fees for any failure to pay amounts when due or failure to comply in any way with the Franchise Agreement. |
| Audit | Cost of audit | On demand | For costs incurred by us for each financial audit, provided the audit determines underreporting of 2% or greater during any designated audit period. Includes fees incurred by us including audit, legal, travel and reasonable accommodations. |
| Quality Assurance Audit | Actual costs incurred by us | As invoiced | Payable if we engage a third party to perform periodic quality assurance audits, including mystery shopper programs. |
| Management Service | 20% of Gross Sales, plus expenses | As invoiced | Payable if we elect to manage the Franchised Business due to death, disability, a failure by you to have the Franchised Business managed by an authorized Managing Owner or Manager, etc. |
| Collections | Actual fees, costs, and expenses |
Source: Item 6 — OTHER FEES (FDD pages 14–19)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, not all fees described in Item 6 are recurring. While Note 1 generally states that all fees are recurring, the table in Item 6 lists various fees that are charged on a one-time or as-needed basis, depending on specific circumstances. These include fees for non-compliance, legal fees, audit costs, and costs related to transfers or renewals.
For example, fees such as 'Reporting Non-Compliance' ($150 per occurrence), 'Operations Non-Compliance' ($450 to $1,000 per occurrence), and 'Payment Non-Compliance' ($150 per occurrence) are only payable if a franchisee fails to meet specific requirements outlined in the Franchise Agreement. Similarly, fees like 'Audit' (cost of audit) and 'Legal Fees and Expenses' (costs and expenses) are contingent on specific actions or events, such as underreporting income or failing to comply with the Franchise Agreement. These are not recurring in the sense of being charged regularly.
Other fees, such as those related to 'Transfer' (50% of the current franchise fee) or 'Renewal' (10% of the current franchise fee), are only applicable if the franchisee chooses to transfer their franchise or renew their agreement. These fees are one-time charges associated with those specific actions. Therefore, while some fees like the Royalty Fee, Brand Development Fund Fee, Technology Fee and Sales and Support Center Fee are recurring weekly fees, many other fees listed in Item 6 are conditional and non-recurring, depending on the franchisee's actions and circumstances.
A prospective Deer Solution franchisee should carefully review all the fees listed in Item 6 and understand the conditions under which each fee is charged. It's important to distinguish between the fees that will be incurred regularly and those that are only payable in specific situations to accurately assess the overall cost of operating a Deer Solution franchise.