Does the Deer Solution franchise agreement specify that the 'Accounting Period' is for the payment of other obligations under the agreement?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
"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.
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 in relation to the franchisee's financial obligations. The Accounting Period is the timeframe determined by Deer Solution for measuring and reporting financial information, as well as for the franchisee's payment of financial obligations. This includes reporting financial data to Deer Solution and paying all fees and other obligations under the Franchise Agreement.
The Accounting Period will be determined by Deer Solution and can be weekly, monthly, or another designated time frame. The Accounting Period commences on the earlier of the Scheduled Business Commencement Date or the Actual Business Commencement Date and continues throughout the term of the agreement. Unless otherwise specified by Deer Solution, the Accounting Period is weekly.
For a prospective Deer Solution franchisee, this means that the frequency with which they must report financial information and pay fees can vary, but is typically weekly. It is important for franchisees to understand that Deer Solution has the right to change the Accounting Period, which could impact their cash flow management and administrative responsibilities. Franchisees should clarify with Deer Solution the specific Accounting Period that will apply to their franchise and any potential for changes to this period during the term of the agreement.