Does the Deer Solution franchisor have the right to change the designated 'Accounting Period'?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
sideration, the receipt and sufficiency of which is hereby mutually acknowledged, the parties agree, as follows:
ARTICLE 1 DEFINITIONS
Supplementing the terms and definitions contained in the foregoing "Recitals":
"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.
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 and modify the 'Accounting Period' for franchisees. The 'Accounting Period' is defined as the timeframe selected by Deer Solution for measuring, reporting financial information, and paying financial obligations. This period is determined by Deer Solution and applies to the franchisee's obligation to report financial data and pay fees under the agreement.
The franchisor designates the specific times for these accounting periods, which can be instant upon receipt of Gross Sales, weekly, monthly, or otherwise. These periods automatically begin on the earlier of the Scheduled Business Commencement Date or the Actual Business Commencement Date and continue throughout the term of the agreement. Unless Deer Solution specifies otherwise, the default accounting period is weekly.
This means that Deer Solution franchisees must adhere to the accounting periods set by the franchisor, which may change over time. Franchisees need to be prepared to report financial information and make payments according to the schedule determined by Deer Solution. This could impact their cash flow management and require adjustments to their internal accounting processes to align with the franchisor's requirements.