Does the Deer Solution franchise agreement specify that the 'Accounting Period' automatically commences on the Scheduled Business Commencement Date?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
sideration, the receipt and sufficiency of which is hereby mutually acknowledged, the parties agree, as follows:
ARTICLE 1 DEFINITIONS
Supplementing the terms and definitions contained in the foregoing "Recitals":
"Accounting Period" refers to and means the period of time selected and determined by Franchisor for the required measurement and reporting of financial information and payment of financial obligations by Franchisee. The applicable measurement period will be determined by Franchisor from time to time with respect to Franchisee's obligations to report financial information and data to Franchisor and Franchisee's payment of all fees, including, and other obligations under this Agreement. The respective "Accounting Period" shall be those Franchisor designated times, whether, instantly on a recurring basis upon receipt of Gross Sales, weekly, monthly, or otherwise, as designated by Franchisor, with all such Accounting Periods automatically commencing on the earlier of the (a) Scheduled Business Commencement Date, or (b) the Actual Business Commencement Date of the Franchised Business and, continuing, throughout the Term of this Agreement. Unless otherwise designated by Franchisor at any time, unless otherwise specified in this Agreement, the Accounting Period shall be a weekly period for each and every week throughout the Term of this Agreement.
"Actual Business Commencement Date" refers to and means the date of the grand opening of the Franchised Business and/or the date upon which the Franchised Business is open to the public.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the Accounting Period is defined as the timeframe the franchisor selects for franchisees to measure, report, and pay financial obligations. The Accounting Period for Deer Solution automatically starts on the earlier of either the Scheduled Business Commencement Date or the Actual Business Commencement Date. It continues throughout the term of the agreement. Unless Deer Solution designates otherwise, the Accounting Period is weekly.
The Scheduled Business Commencement Date for Deer Solution is defined as the date that occurs 120 days following the Effective Date of the Franchise Agreement. The Effective Date is the date set forth and defined in the first paragraph of the agreement. If the Effective Date cannot be determined by reference to the Franchise Agreement, the Effective Date shall be the date that you sign this Agreement.
For a prospective Deer Solution franchisee, this means that the franchisee's financial reporting and payment obligations to Deer Solution begin no later than 120 days after signing the agreement, even if the business has not yet opened. This could require franchisees to start managing and reporting finances to Deer Solution before generating revenue, so it's important to understand the specific reporting requirements and payment schedules.