Do Deer Solution franchisee's contributions to the Advertising Cooperative count towards their minimum local marketing obligations?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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.;
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, a franchisee's contributions to the Advertising Cooperative can count towards their minimum local marketing obligations. If an Advertising Cooperative exists for the franchisee's area, or is established during the term of the agreement, the franchisee must participate and contribute as determined by the Cooperative.
However, the franchisee's contributions to the Advertising Cooperative cannot exceed the minimum local marketing obligations outlined in Article 9.B of the agreement. This means that while participation in the Advertising Cooperative is mandatory if one exists, the amount contributed will be credited towards the franchisee's required local marketing spend, up to the total amount of that obligation.
This arrangement benefits Deer Solution franchisees by allowing them to pool resources and coordinate marketing efforts through the Advertising Cooperative, while also ensuring that their contributions fulfill their local marketing requirements. It also ensures that Deer Solution franchisees are not forced to spend above their local marketing obligations to participate in the Advertising Cooperative.