To whom are the fees and payments described in Item 6 of the Deer Solution FDD payable?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
es to Item 6 Other Fees
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.
Note 2: Royalty Fees – You must pay to us a continuing royalty fee (the "Royalty Fee"). The Royalty Fee is a continuing weekly fee equal to 8% (the "Royalty Rate") of your weekly Gross Sales. In the event we receive Gross Sales directly from the customer of your Deer Solution Business, we may charge the Royalty Fee instantly. If any federal, state, or local tax other than an income tax is imposed on the Royalty Fee which we cannot directly, and dollar for dollar, offset against taxes required to be paid under any applicable federal or state laws, you must compensate us in the manner prescribed by us so that the net amount or net effective Royalty Fees received by us is not less than 8% of your Gross Sales.
Note 3: Gross Sales – "Gross Sales" means the total dollar sales from all business and customers of your Deer Solution Business and includes the total gross amount of revenues and sales from whatever source derived, whether in form of cash, credit, agreements to pay or other consideration including the actual retail value of any goods or services traded, borrowed, or received by you in exchange for any form of non-money consideration (whether or not payment is received at the time of the sale), from or derived by you or any other person or Corporate Entity from business conducted or which started in, on, from or through your Deer Solution Business and/or your operating territory, whether such business is conducted in compliance with or in violation of the terms of the Franchise Agreement. Gross Sales include the total gross amount of revenues and sales from whatever source derived from and/or derived by you including, any person and/or Corporate Entity acting on your behalf, from business conducted within and/or outside your operating territory that is related to your Deer Solution Business and/or a competitive business located and/or operated within your operating territory, outside your operating territory, and/or otherwise. Gross Sales do not include (a) sales taxes that you collect and remit to the proper taxing authority, and (b) authorized promotional discounts that you provide to customers.
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 and payments outlined in Item 6 are generally payable to Deer Solution or its affiliates, unless otherwise specified. Note 1 of Item 6 clarifies that all fees are uniformly imposed for all franchises, are recurring, and are not refundable.
The document specifies that payment is subject to Deer Solution's instructions, including the option to have fees automatically drafted from the franchisee's business bank account via an ACH Authorization Form. Franchisees are required to deposit gross sales into designated bank accounts subject to ACH authorization and must use pre-authorized payment systems designated by Deer Solution. Deer Solution also has the option to directly collect gross sales and pre-deduct fees owed to them, their affiliates, or designated suppliers, remitting the balance to the franchisee.
However, there are exceptions. For example, Note 6 discusses the Professional Referral Program, where franchisees pay a fee of 10% of gross sales from referred leads. Deer Solution calculates, collects, and issues the commission payment to the referring professional on the franchisee's behalf. Additionally, if a local or regional advertising cooperative is established, franchisees will be required to make ongoing payments to the cooperative, as stated in Note 7. Therefore, while most fees are paid to Deer Solution or its affiliates, some payments are directed to third parties like referring professionals or advertising cooperatives.