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If an Advertising Cooperative has been established for a geographic area that includes the Deer Solution franchisee's business location at the time of the agreement, what actions must the franchisee take?

Deer_Solution Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (4) If at the time of execution of this Agreement an Advertising Cooperative has been established for a geographic area that includes, in whole or in part, Franchisee's Deer Solution Business location or Operating Territory, or if such Advertising Cooperative is established during the Term of this Agreement, Franchisee shall fully participate in the Advertising Cooperative and Franchisee shall execute, at the request of Franchisor, all documents required by Franchisor and Franchisee shall become a member of the Advertising Cooperative subject to the terms of those documents;

  • (5) Franchisee shall contribute to the Advertising Cooperative in the amounts as determined and required by the Advertising Cooperative or, otherwise in accordance with those documents governing the operation of the Advertising Cooperative; provided, however, Franchisee's contributions to the Advertising Cooperative shall not exceed Franchisee's local minimum marketing obligations set forth in Article 9.B. of this Agreement and Franchisee's contributions to the Advertising Cooperative shall count toward satisfaction of Franchisee's minimum local marketing obligations set forth in Article 9.B.;

  • (6) Franchisee shall submit to the Advertising Cooperative and to Franchisor such statements and reports as may be required by the Advertising Cooperative and approved by Franchisor.

All contributions to the Advertising Cooperative shall be maintained and administered in accordance with the documents governing the Advertising Cooperative.

The Advertising Cooperative shall be operated solely for the purpose of collection and expenditure of the Advertising Cooperative's fees for the purpose set forth in this Article 9.G.;

  • (7) No marketing materials, plans, or media may be used by the Advertising Cooperative or its members without the prior written approval of Franchisor;

  • (8) Deer Solution Businesses owned by Franchisor and/or Franchisor's affiliates that are located within the geographic area of the designated Advertising Cooperative are not required to make contributions to the Advertising Cooperative; and

  • (9) The Advertising Cooperative must comply with the rules and regulations established by Franchisor in the Operations Manual which may be modified by Franchisor from time to time.

Source: Item 23 — RECEIPTS (FDD pages 55–246)

What This Means (2025 FDD)

According to Deer Solution's 2025 Franchise Disclosure Document, if an Advertising Cooperative has been established for a geographic area that includes the franchisee's Deer Solution Business location or Operating Territory at the time of the agreement, the franchisee must fully participate in the Advertising Cooperative. This participation includes executing all documents required by Deer Solution and becoming a member of the Advertising Cooperative, subject to the terms of those documents.

Furthermore, the Deer Solution franchisee is required to contribute to the Advertising Cooperative in the amounts determined and required by the cooperative. However, the franchisee's contributions to the Advertising Cooperative cannot exceed the franchisee's local minimum marketing obligations as outlined in Article 9.B of the agreement. The contributions made to the Advertising Cooperative will count toward satisfying the franchisee's minimum local marketing obligations, as also detailed in Article 9.B.

In addition to financial contributions, the Deer Solution franchisee must submit statements and reports to both the Advertising Cooperative and Deer Solution, as required by the cooperative and approved by Deer Solution. It is important to note that all marketing materials, plans, or media used by the Advertising Cooperative or its members must receive prior written approval from Deer Solution. Deer Solution businesses owned by the franchisor or its affiliates within the Advertising Cooperative's geographic area are not required to contribute to the cooperative. The Advertising Cooperative must also comply with the rules and regulations established by Deer Solution in the Operations Manual, which may be modified from time to time.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.