Does the Deer Solution franchise agreement specify that 'Advertising Contributions' include the Brand Development Fund Fee?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
(1) If Franchisor institutes the Brand Development Fund, Franchisee shall pay, on the Due Date, a mandatory and continuing fee to the Brand Development Fund in an amount equal to a percentage of Gross Sales (as determined and designated by Franchisor in Franchisor's Reasonable Business Judgment) and, in accordance with the payment terms of Article 5.E. of this Agreement (the "Brand Development Fund Fee"), provided, however, Franchisee will not be required to contribute more than 3% of the Gross Sales of the Franchised Business for each weekly Accounting Period;
(2) Franchisor will provide Franchisee with written notice of the Brand Development Fund Contribution Percentage. Upon such written notice to Franchisee, the Brand Development Fund Fee be paid by Franchisee to the Brand Development Fund and/or, at Franchisor's election, prededucted from Franchisee's Gross Sales by Franchisor and shall be applicable at all times thereafter throughout the Term, except as may be otherwise designated by Franchisor in writing. The Brand Development Fund Fee shall be paid to Franchisor on the Due Date and in accordance with the payment terms and method set forth in Article 5.B. for the payment of Royalty Fees;
(3) Franchisor, in Franchisor's Reasonable Business Judgment, shall direct all advertising, media placement, marketing and public relations programs and activities financed by the Brand Development Fund, with sole discretion over the strategic direction, creative concepts, materials, and endorsements used by the Brand Development Fund, and the geographic, market, and media placement and allocation thereof.
Without limiting the foregoing, the Brand Development Fund may also be utilized for evaluation and monitoring of the Business Management Systems, maintenance and upgrades to the System Website, and development of Digital Media;
- (4) Franchisee agrees that the purpose of the advertising, media, marketing, and activities financed by the Brand Development Fund is and shall be for the general enhancement of the System brand as associated with the Licensed Marks and general public brand recognition and awareness of the Licensed Marks.
The Brand Development Fund will not be utilized to directly or indirectly market or promote the Franchised Business or, unless otherwise directed by Franchisor, in Franchisor's Reasonable Business Judgment, pay for media placements that may benefit or include any media market that includes Franchisee's Administrative Office or Operating Territory;
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 pay a mandatory and continuing fee to the Brand Development Fund. This fee, referred to as the "Brand Development Fund Fee", is a percentage of Gross Sales, determined by Deer Solution, but will not exceed 3% of Gross Sales for each weekly Accounting Period.
Deer Solution directs all advertising, media placement, marketing, and public relations programs financed by the Brand Development Fund, maintaining sole discretion over the strategic direction, creative concepts, materials, and endorsements used. The fund's purpose is to enhance the System brand, increase public recognition, and raise awareness of the Licensed Marks. The Brand Development Fund will not be used to directly market or promote an individual Franchised Business, unless otherwise directed by Deer Solution.
Deer Solution may use the Brand Development Fund to pay for its expenses related to the administration and activities of the Brand Development Fund and creation or conduct of its marketing programs. Deer Solution Businesses owned by Deer Solution or its affiliates are not required to pay any Brand Development Fund Fee or contribute to the Brand Development Fund. Franchisees must participate in all advertising, marketing, promotions, research, and public relations programs instituted by the Brand Development Fund.
Prospective franchisees should note that Deer Solution is not obligated to ensure that expenditures from the Brand Development Fund in any geographic area are proportionate or equivalent to the contributions from Deer Solution Businesses operating in that area. Additionally, Deer Solution may use the Brand Development Fund to promote or benefit any type of Deer Solution Businesses in the System, or those located within a particular region of the United States. The franchisee's obligation to contribute to the Brand Development Fund remains, regardless of whether they directly benefit from the fund's activities or if other franchisees fail to make their contributions.