Does the Deer Solution franchise agreement specify any fees associated with the Business Management System?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor reserves the right to modify and designate alternative Business Management Systems as Franchisor determines in Franchisor's Reasonable Business Judgment.
At all times, Franchisor shall possess direct live access and storage based access to the Business Management System for the Franchised Business and to Franchisee's Business Management System Data.
- "Business Management System Data" refers to and means the forms, data, tools, customer information, inventory and sales information that: (a) is pre-populated or entered into the Business Management System utilized by Franchisee; (b) is entered (whether by Franchisor or Franchisee) into the Business Management System utilized by Franchisee; and/or (c) is recorded, stored and/or maintained by the Business Management System in connection with the management and operations of the Franchised Business.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
The 2025 Deer Solution Franchise Disclosure Document defines the Business Management System but does not explicitly state any specific fees directly associated with its use. The FDD mentions that the franchisor reserves the right to modify and designate alternative Business Management Systems. It also states that the franchisor has direct access to the franchisee's Business Management System and its data. However, the document does define fees such as Royalty Fees, Advertising Contributions, Sales and Support Center Fees, and Supplemental Training Fees.
While there's no direct mention of fees for the Business Management System, the agreement stipulates that upon termination, the franchisee must pay all sums and fees due to the franchisor, which could potentially include costs related to the system if outlined elsewhere in the agreement. The franchisee must also cease using the Business Management System upon termination.
Therefore, prospective Deer Solution franchisees should clarify with the franchisor whether there are any explicit or implicit fees associated with the Business Management System, how these fees are calculated, and under what circumstances they might be incurred. It would also be prudent to understand the costs associated with any modifications or alternative systems that the franchisor might implement during the franchise term.