How does a Deer Solution franchisee pay the Brand Development Fund Fee?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
(1) If Franchisor institutes the Brand Development Fund, Franchisee shall pay, on the Due Date, a mandatory and continuing fee to the Brand Development Fund in an amount equal to a percentage of Gross Sales (as determined and designated by Franchisor in Franchisor's Reasonable Business Judgment) and, in accordance with the payment terms of Article 5.E. of this Agreement (the "Brand Development Fund Fee"), provided, however, Franchisee will not be required to contribute more than 3% of the Gross Sales of the Franchised Business for each weekly Accounting Period;
(2) Franchisor will provide Franchisee with written notice of the Brand Development Fund Contribution Percentage. Upon such written notice to Franchisee, the Brand Development Fund Fee be paid by Franchisee to the Brand Development Fund and/or, at Franchisor's election, prededucted from Franchisee's Gross Sales by Franchisor and shall be applicable at all times thereafter throughout the Term, except as may be otherwise designated by Franchisor in writing. The Brand Development Fund Fee shall be paid to Franchisor on the Due Date and in accordance with the payment terms and method set forth in Article 5.B. for the payment of Royalty Fees;
(3) Franchisor, in Franchisor's Reasonable Business Judgment, shall direct all advertising, media placement, marketing and public relations programs and activities financed by the Brand Development Fund, with sole discretion over the strategic direction, creative concepts, materials, and endorsements used by the Brand Development Fund, and the geographic, market, and media placement and allocation thereof.
Without limiting the foregoing, the Brand Development Fund may also be utilized for evaluation and monitoring of the Business Management Systems, maintenance and upgrades to the System Website, and development of Digital Media;
- (4) Franchisee agrees that the purpose of the advertising, media, marketing, and activities financed by the Brand Development Fund is and shall be for the general enhancement of the System brand as associated with the Licensed Marks and general public brand recognition and awareness of the Licensed Marks.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, franchisees are required to pay a Brand Development Fund Fee. The fee is a percentage of gross sales, as determined by Deer Solution, but will not exceed 3% of gross sales for each weekly accounting period.
The Brand Development Fund Fee is paid to Deer Solution on the due date, following the payment terms outlined in Article 5.B, which also governs royalty fee payments. Deer Solution has the option to pre-deduct the Brand Development Fund Fee from the franchisee's gross sales. Franchisees will receive written notice from Deer Solution regarding the specific percentage required for the Brand Development Fund contribution.
Deer Solution uses these funds for brand-level advertising, marketing, and development programs. These programs are intended for the general enhancement of the Deer Solution brand and to increase public recognition of the licensed marks. While Deer Solution aims to develop advertising and marketing materials, there is no obligation to ensure that expenditures in any geographic area are proportionate to the contributions from Deer Solution businesses in that area.