Are the fees described in Item 6 of the Deer Solution FDD uniformly imposed for all franchises?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 1: Type of Fee – The above table describes fees and payments that you must pay to us, our affiliates, or that our affiliates may impose or collect on behalf of a third party. All fees are uniformly imposed for all franchises offered under this Disclosure Document, are recurring, are not refundable, and are payable to us, unless otherwise specified. Payment is subject to our specification and instruction, including our election to have all fees automatically drafted from your business bank account or automatically debited or charged to your business bank account. You will be required to sign an ACH Authorization Form (Franchise Agreement, Exhibit 4) permitting us to electronically debit your designated bank account for payment of all fees payable to us and/or our affiliates. You must deposit the Gross Sales of your Deer Solution Business into the designated bank accounts that are subject to our ACH authorization. You must install and use, at your expense, the pre-authorized payment, business management system, credit card processing, automatic payment, automated banking, electronic debit and/or electronic funds transfer systems that we designate and require in the operation of your Deer Solution Business. You must pay all service charges and fees charged to you by your bank so that we may electronically debit your bank account. We may, at our election,
directly collect the Gross Sales of your Dee Solution Business and we will pre-deduct all of the fees and payments due to us, our affiliates, or our designated supplies, and we will remit the balance to you.
Source: Item 6 — OTHER FEES (FDD pages 14–19)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the fees outlined in Item 6 are uniformly imposed on all franchises. This means that all franchisees are subject to the same fee structure, which includes royalty fees, brand development fund fees, technology fees, and other potential charges. This uniformity ensures that all franchisees are treated equally in terms of financial obligations to Deer Solution.
However, there are some fees that may vary based on specific circumstances or actions of the franchisee. For example, non-compliance fees, such as those for reporting or operational failures, are only imposed if a franchisee violates the terms of the Franchise Agreement. Similarly, fees related to audits or legal expenses are contingent on specific events, such as underreporting of sales or breaches of contract. The Sales and Support Center Fee will depend on the Sales and Support Center Services that Deer Solution designates and that the franchisee utilizes but will not exceed 8.5% of weekly Gross Sales.
Additionally, participation in local or regional advertising cooperatives may require ongoing payments, but these contributions count toward the minimum local marketing requirements. The franchisor may also charge fees for customer service and refunds based on costs incurred, as well as an annual conference attendance fee not exceeding $1,500. While the base fees are uniformly applied, franchisees should be aware of these potential additional costs that can arise from specific situations or choices they make in operating their Deer Solution business.
In summary, while the core fees like royalty and brand development are consistently applied across all Deer Solution franchises, franchisees need to understand the conditions under which other fees may be levied. This includes non-compliance, specific service utilization, and participation in optional programs like advertising cooperatives. Understanding these nuances is crucial for budgeting and managing the financial aspects of the franchise.