What are 'Franchise Related Expenses' for a Deer Solution franchise?

According to Deer Solution's 2025 Franchise Disclosure Document, 'Franchise Related Expenses' encompass specific fees mandated by the Franchise Agreements. These include Royalty Fees, Brand Development Fund Fees, Technology Fees, Sales and Support Center Fees, and local marketing expenditures.

For a prospective Deer Solution franchisee, understanding these expenses is crucial for financial planning. The Royalty Fee is 8% of Gross Sales. The Brand Development Fund Fee is currently 2% of Gross Sales but may be increased to 3%. While there is currently no Technology Fee, Deer Solution retains the right to implement one in the future. The Sales and Support Center Fee is 6.5% of Gross Sales but may be increased to 8.5%. Additionally, franchisees must spend at least $10,000 per Territory per year on local marketing.

It is important to note that 'Franchise Related Expenses' do not cover all fee and payment obligations required under the Franchise Agreement. Therefore, franchisees should carefully review the entire agreement to understand all financial obligations. The FDD also clarifies that the financial information provided was not prepared on a basis consistent with generally accepted accounting principles and is based on historical financial data, not a forecast.