For Deer Solution, can the franchisor pre-deduct the software fee from gross sales?

According to Deer Solution's 2025 Franchise Disclosure Document, the franchisor has the option to pre-deduct the software fee from a franchisee's gross sales. The FDD states that the software fee, if applicable, may be pre-deducted from gross sales at Deer Solution's election. This software fee is a continuing monthly, non-refundable fee that the franchisee must pay to Deer Solution, its affiliates, or designees. Deer Solution also retains the right to increase this software fee at any time in the future.

This means that Deer Solution can choose to take the software fee directly from the franchisee's gross sales before remitting the remaining balance to the franchisee. This could impact the franchisee's cash flow, as the franchisee would not have control over these funds initially. It is important to note that the professional referral fee is separate from the software fee.

As a prospective franchisee, it would be prudent to clarify with Deer Solution whether they intend to pre-deduct the software fee and under what circumstances they would exercise this option. Understanding the frequency and amount of the software fee, as well as any potential increases, is crucial for financial planning. Additionally, franchisees should inquire about the specific software provided and its benefits to justify the fee.