Can the Deer Solution franchisor designate the 'Accounting Period' to be monthly?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
"Accounting Period" refers to and means the period of time selected and determined by Franchisor for the required measurement and reporting of financial information and payment of financial obligations by Franchisee. The applicable measurement period will be determined by Franchisor from time to time with respect to Franchisee's obligations to report financial information and data to Franchisor and Franchisee's payment of all fees, including, and other obligations under this Agreement. The respective "Accounting Period" shall be those Franchisor designated times, whether, instantly on a recurring basis upon receipt of Gross Sales, weekly, monthly, or otherwise, as designated by Franchisor, with all such Accounting Periods automatically commencing on the earlier of the (a) Scheduled Business Commencement Date, or (b) the Actual Business Commencement Date of the Franchised Business and, continuing, throughout the Term of this Agreement. Unless otherwise designated by Franchisor at any time, unless otherwise specified in this Agreement, the Accounting Period shall be a weekly period for each and every week throughout the Term of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the franchisor has the authority to determine the 'Accounting Period' for franchisees. The 'Accounting Period' is the timeframe used for measuring and reporting financial information, as well as for paying financial obligations. Deer Solution can designate this period to be weekly, monthly, or another interval. Unless otherwise specified by Deer Solution, the accounting period will default to weekly throughout the term of the agreement.
This means that a prospective Deer Solution franchisee may be required to report financial data and pay fees on a schedule determined by the franchisor. While the default is weekly, Deer Solution retains the right to change this to monthly or another period.
For a potential franchisee, this indicates a need to be prepared for potentially frequent reporting and payment obligations. It is important to clarify with Deer Solution the specific accounting period they intend to enforce and whether there are any circumstances under which this period might change. Understanding the reporting and payment schedule is crucial for managing cash flow and financial planning as a Deer Solution franchisee.