Does the Deer Solution franchisee have to participate in the Advertising Cooperative if their business is located within the geographic area of the cooperative?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee's Deer Solution Business or Operating Territory is located within the geographic area of an Advertising Cooperative, franchisee must participate in and contribute to the Advertising Cooperative. Franchisee agrees to the following:
(1) If Franchisor previously instituted or, in the future, institutes an Advertising Cooperative that includes, in whole or in part, Franchisee's Operating Territory or Franchisee's Deer Solution Business Location, Franchisee shall participate in and make such on-going financial contributions to the Advertising Cooperative, as determined by the Advertising Cooperative;
(2) Franchisor may establish foundational and organizational requirements of the Advertising Cooperative including voting provisions that allows the Advertising Cooperative to make decisions based on the simple majority vote (one vote per franchisee Deer Solution Business located within the designated area of the Advertising Cooperative) with a quorum constituting 25% of those franchisees within the Advertising Cooperative;
(3) Unless otherwise authorized and approved by Franchisor in writing, each Advertising Cooperative shall be organized for the exclusive purpose of administering marketing programs and the development of media (all subject to the review and approval of Franchisor) for use by members of the Advertising Cooperative in local or regional marketing;
(4) If at the time of execution of this Agreement an Advertising Cooperative has been established for a geographic area that includes, in whole or in part, Franchisee's Deer Solution Business location or Operating Territory, or if such Advertising Cooperative is established during the Term of this Agreement, Franchisee shall fully participate in the Advertising Cooperative and Franchisee shall execute, at the request of Franchisor, all documents required by Franchisor and Franchisee shall become a member of the Advertising Cooperative subject to the terms of those documents;
(5) Franchisee shall contribute to the Advertising Cooperative in the amounts as determined and required by the Advertising Cooperative or, otherwise in accordance with those documents governing the operation of the Advertising Cooperative; provided, however, Franchisee's contributions to the Advertising Cooperative shall not exceed Franchisee's local minimum marketing obligations set forth in Article 9.B. of this Agreement and Franchisee's contributions to the Advertising Cooperative shall count toward satisfaction of Franchisee's minimum local marketing obligations set forth in Article 9.B.;
(6) Franchisee shall submit to the Advertising Cooperative and to Franchisor such statements and reports as may be required by the Advertising Cooperative and approved by Franchisor.
All contributions to the Advertising Cooperative shall be maintained and administered in accordance with the documents governing the Advertising Cooperative.
The Advertising Cooperative shall be operated solely for the purpose of collection and expenditure of the Advertising Cooperative's fees for the purpose set forth in this Article 9.G.;
(7) No marketing materials, plans, or media may be used by the Advertising Cooperative or its members without the prior written approval of Franchisor;
(8) Deer Solution Businesses owned by Franchisor and/or Franchisor's affiliates that are located within the geographic area of the designated Advertising Cooperative are not required to make contributions to the Advertising Cooperative; and
(9) The Advertising Cooperative must comply with the rules and regulations established by Franchisor in the Operations Manual which may be modified by Franchisor from time to time.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, if a franchisee's Deer Solution business or operating territory is located within the geographic area of a designated Advertising Cooperative, participation is mandatory. The franchisee must contribute financially to the cooperative, with the specific amount determined by the Advertising Cooperative itself.
Deer Solution retains the sole right to establish and designate these Advertising Cooperatives in markets with two or more franchises. The cooperative's purpose is to administer marketing programs and develop media for local or regional marketing efforts, all subject to Deer Solution's review and approval. Franchisees are required to execute all necessary documents and become members of the cooperative if one exists at the time of the agreement or is established during the agreement's term.
While franchisees must contribute to the Advertising Cooperative, the FDD stipulates that these contributions will not exceed the franchisee's local minimum marketing obligations as outlined in Article 9.B of the agreement. Furthermore, these contributions count toward fulfilling the franchisee's minimum local marketing obligations. Franchisees must also provide statements and reports to both the Advertising Cooperative and Deer Solution as required.
It's important to note that Deer Solution businesses owned by the franchisor or its affiliates within the Advertising Cooperative's area are not required to contribute. The Advertising Cooperative operates solely for collecting and spending fees for its designated purposes, and all marketing materials and plans require prior written approval from Deer Solution. The Advertising Cooperative makes decisions based on a simple majority vote, with a quorum of 25% of the franchisees within the cooperative.