What does the franchisee authorize Deer Solution Franchising LLC to do regarding their bank account?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
For purposes of the Statement of Cash Flows, cash equivalents include bank accounts and cash in transit for bank deposit with maturities of three months or less to be cash equivalents.
The Company collects funds from franchisees to manage the brand level advertising, marketing and development program. The fee is based on a percentage of the gross sales less any amount paid towards sales tax, payable weekly.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
Based on the 2025 Deer Solution Franchise Disclosure Document, there is no information provided that states the franchisee authorizes Deer Solution Franchising LLC to do anything regarding their bank account. The document does mention that cash equivalents include bank accounts. Also, the company collects funds from franchisees for brand development, but it does not specify how these funds are collected or if they have direct access to the franchisee's bank account.
Because the FDD does not specify the details of how Deer Solution collects funds from franchisees, it is important for a prospective franchisee to seek clarification from the franchisor on how the brand development fund fees are collected.
Understanding the payment methods and any potential access the franchisor has to the franchisee's funds is crucial for financial transparency and control.