factual

Does the Deer Solution franchise agreement define 'Advertising Contributions' as obligations to pay fees to the franchisor?

Deer_Solution Franchise · 2025 FDD

Answer from 2025 FDD Document

Without limitation as to any other Article or provision of this Agreement, upon expiration or termination of this Agreement for any reason, Franchisee shall immediately pay to Franchisor all sums and fees due from Franchisee to Franchisor under the terms of this Agreement including, but not limited to Royalty Fees and Advertising Contributions and all other sums and fees due from Franchisee to Franchisor and/or Franchisor affiliates and/or suppliers for products and services including, but not limited to, System Supplies.

Source: Item 23 — RECEIPTS (FDD pages 55–246)

What This Means (2025 FDD)

According to Deer Solution's 2025 Franchise Disclosure Document, 'Advertising Contributions' are indeed considered sums and fees due to the franchisor under the franchise agreement. Specifically, upon the expiration or termination of the agreement, the franchisee is obligated to pay all outstanding sums and fees, including Royalty Fees and Advertising Contributions, to Deer Solution. This obligation extends to other sums and fees owed to Deer Solution affiliates or suppliers for products and services, such as System Supplies.

This means that a Deer Solution franchisee must budget for and remain current on all advertising contributions throughout the term of the agreement. Failure to do so could result in financial penalties or other repercussions, especially upon termination or expiration of the franchise agreement. The franchisee's financial obligations are not limited to just royalty and advertising fees but encompass all debts to the franchisor and its associated entities.

This requirement is fairly standard in franchising, as advertising is crucial for brand recognition and attracting customers. Franchise agreements typically outline the franchisee's responsibility to contribute to advertising efforts, whether through a national fund managed by the franchisor or local advertising cooperatives. The Deer Solution franchise agreement is consistent with this practice, ensuring that franchisees understand their financial obligations related to advertising and marketing initiatives.

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.