How might the Deer Solution Franchisor elect to receive Royalty Fee payments?

According to the 2025 Deer Solution Franchise Disclosure Document, the franchisor has the sole discretion regarding the application of payments received from franchisees. This means Deer Solution can apply payments to any outstanding debts the franchisee owes.

Specifically, Deer Solution can allocate payments to cover past due royalty fees, advertising contributions, purchases from the franchisor or its affiliates, interest, or any other form of debt the franchisee has incurred with Deer Solution or its affiliates. This gives Deer Solution significant control over how payments are applied, potentially prioritizing certain debts over others.

This policy has important implications for prospective franchisees. It means that if a Deer Solution franchisee has multiple outstanding debts, the franchisor can choose which debt to satisfy first, regardless of the franchisee's preference. Franchisees should be aware of this provision and maintain careful records of their payments and outstanding balances to avoid potential disputes with Deer Solution.