Does the Deer Solution franchisee have any control over the strategic direction of the Brand Development Fund?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchisor's immediately preceding fiscal year shall be made available to Franchisee upon Franchisee's written request. Franchisor will have the right to cause the Brand Development Fund to be incorporated or operated through an entity separate from Franchisor at such time as Franchisor deems appropriate, and such successor entity shall have all rights and duties of Franchisor pursuant to this Article 9.A.(8);
- (9) Although Franchisor will endeavor to utilize the Brand Development Fund to develop advertising and marketing materials and programs, Franchisor undertakes no obligation to ensure that expenditures by the Brand Development Fund in or affecting any geographic area are proportionate or equivalent to the contributions to the Brand Development Fund by Deer Solution Businesses operating in that geographic area or that any Deer Solution Businesses will benefit directly or in proportion to its contribution to the Brand Development Fund from the development of advertising and marketing materials. Franchisor may use the Brand Development Fund to promote or benefit any type of Deer Solution Businesses in the System. Franchisor may use the Brand Development Fund to promote or benefit Deer Solution Businesses located within a particular region of the United States. Franchisee agrees that Franchisee's failure to derive any such benefit will not serve as a basis for a reduction or elimination of its obligation to contribute to the Brand Development Fund. Franchisee agrees that the failure (whether with or without Franchisor's permission) of any other franchisee to make the appropriate amount of contributions to the Brand Development Fund shall not in any way release Franchisee from or reduce Franchisee's obligations under this Article 9, such obligations being separate and independent obligations of Franchisee under this Agreement. Except as expressly provided in this Article 9, Franchisor assumes no direct or indirect liability, responsibility, or obligation to Franchisee with respect to the maintenance, direction, and/or administration of the Brand Development Fund; and
- (10) Franchisor, in Franchisor's Reasonable Business Judgment, may establish a council to provide guidance respecting the administration of the Brand Development Fund and marketing matters concerning the Brand Development Fund. The council shall only serve in an advisory capacity and Franchisor shall select members of the council which may be comprised of employees of Franchisor, Franchisor, franchisees of the System and third parties.
9.B. LOCAL MARKETING
On an on-going annual basis, Franchisee must not spend less than $10,000 per Territory per year on local marketing of the Franchised Business within and/or targeted to Franchisee's Operating Territory (the "Minimum Annual Local Marketing Requirement").
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, franchisees have limited control over the Brand Development Fund. While Deer Solution may establish a council to provide guidance on the fund's administration and marketing matters, this council serves only in an advisory capacity. Deer Solution retains the authority to select the council members, which may include employees, franchisees, and third parties.
Deer Solution has no obligation to ensure that the Brand Development Fund expenditures in any geographic area are proportionate or equivalent to the contributions from Deer Solution businesses operating in that area. Deer Solution may use the fund to promote or benefit any type of Deer Solution business within the system or those located in a particular region of the United States. A franchisee's failure to derive any benefit from the fund will not reduce or eliminate their obligation to contribute to it.
Deer Solution businesses owned by Deer Solution or its affiliates are not required to pay into the Brand Development Fund. The Brand Development Fund is not a trust, and Deer Solution is not a trustee or fiduciary of the fund. Deer Solution may deposit and maintain the Brand Development Fund fees in its general accounts, and these fees are not required to be segregated from other assets or accounts of Deer Solution.