Does the Deer Solution franchise agreement specify that 'Advertising Contributions' include Advertising Cooperative fees?
Deer_Solution Franchise · 2025 FDDAnswer 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.
18.T. NO RIGHT TO OFFSET
Franchisee shall not, on grounds of the alleged nonperformance, material breach, or default by Franchisor of this Agreement, any other agreement between Franchisor and Franchisee, or for any other reason, withhold any payment, fee, or any other amount payable by Franchisee to Franchisor pursuant to this Agreement, including, without limitation, the payment of the Royalty Fee and Advertising Contributions, or any other payment obligation by Franchisee to Franchisor.
9.G. ADVERTISING COOPERATIVE
If Franchisee's Deer Solution Business or Operating Territory is located within the geographic area of an Advertising Cooperative, franchisee must participate in and contribute to the Advertising Cooperative.
- (5) Franchisee shall contribute to the Advertising Cooperative in the amounts as determined and required by the Advertising Cooperative or, otherwise in accordance with those documents governing the operation of the Advertising Cooperative; provided, however, Franchisee's contributions to the Advertising Cooperative shall not exceed Franchisee's local minimum marketing obligations set forth in Article 9.B. of this Agreement and Franchisee's contributions to the Advertising Cooperative shall count toward satisfaction of Franchisee's minimum local marketing obligations set forth in Article 9.B.;
The Advertising Cooperative shall be operated solely for the purpose of collection and expenditure of the Advertising Cooperative's fees for the purpose set forth in this Article 9.G.;
(7) No marketing materials, plans, or media may be used by the Advertising Cooperative or its members without the prior written approval of Franchisor;
(8) Deer Solution Businesses owned by Franchisor and/or Franchisor's affiliates that are located within the geographic area of the designated Advertising Cooperative are not required to make contributions to the Advertising Cooperative;
"Advertising Cooperative" shall have the meaning defined and set forth in Article 9.G. 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, franchisees are required to participate in and contribute to the Advertising Cooperative if their Deer Solution Business or Operating Territory is located within the geographic area of an Advertising Cooperative. The amount of these contributions is determined by the Advertising Cooperative. However, the franchisee's contributions to the Advertising Cooperative cannot exceed the franchisee's local minimum marketing obligations as outlined in Article 9.B of the agreement. Furthermore, these contributions to the Advertising Cooperative count toward satisfying the franchisee's minimum local marketing obligations also set forth in Article 9.B. This means that participation in the Advertising Cooperative can fulfill a franchisee's local marketing requirements.
The Deer Solution franchise agreement states that all funds contributed to the Advertising Cooperative must be used solely for the collection and expenditure of the Advertising Cooperative's fees as outlined in Article 9.G. The franchisor retains control over the cooperative by requiring that all marketing materials, plans, or media used by the Advertising Cooperative or its members receive prior written approval from Deer Solution. Additionally, Deer Solution businesses owned by the franchisor or its affiliates within the Advertising Cooperative's geographic area are not required to contribute to the cooperative.
Upon termination of the Deer Solution franchise agreement, franchisees must immediately pay all outstanding fees, including Advertising Contributions. The agreement also specifies that franchisees do not have the right to offset or withhold payments, including Advertising Contributions, due to alleged nonperformance or breach by the franchisor. This highlights the importance of understanding the financial obligations and the franchisor's control over advertising and marketing efforts within the Deer Solution franchise system. The definition of "Advertising Cooperative" is set forth in Article 9.G. of the agreement.