Can the Deer Solution franchisor designate the 'Accounting Period' to be weekly?
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 to measure and report financial information, as well as to pay 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 be weekly throughout the term of the agreement.
This means that as a Deer Solution franchisee, you may be required to report financial data and pay fees, including royalties, on a weekly basis. This weekly accounting period commences on the earlier of the Scheduled Business Commencement Date or the Actual Business Commencement Date and continues throughout the term of the Franchise Agreement.
It is important for prospective franchisees to understand that Deer Solution retains the right to change the accounting period. While the default is weekly, the franchisor could modify this to monthly or another interval. Franchisees should factor the administrative burden of weekly reporting and payments into their business planning. This also includes the Brand Development Fund fee which is based on a percentage of gross sales less any amount paid towards sales tax, payable weekly.