If Deer Solution were to use a public figure in the future, what obligations would that create for the franchisee?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING]
Post-Opening Obligations
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- Communication of Operating Standards We may establish, update and provide you with consultations and communications as to the standards, procedures and System requirements as to the operation of your Deer Solution Business including, but not limited to, Approved Services and Products, System Supplies, marketing and promotion standards, and as we may, in our discretion, designate, modify, supplement and amend from time to time and, as set forth in the Manuals. (Franchise Agreement, Articles 4.B. and 4.C.);
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- Marketing Standards and Approval We will establish, update, and communicate to you our standards for the marketing and promotion of the Franchised Business including, but not limited to, the marketing media that you may use. We will respond to your request respecting the communication of our approval or disapproval of marketing media that may be requested by you for use in the marketing and promotion of the Franchised Business. We maintain full discretion as to the marketing standards and the marketing media may be used in the marketing and promotion of your Deer Solution Business (Franchise Agreement, Article 4.B.);
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- Approved Vendors We will provide the names and addresses of approved vendors and suppliers for the Approved Services and Products and the System Supplies. (Franchise Agreement, Articles 4.B. and 4.C.);
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- Annual System Conference We may, in our discretion, coordinate an annual conference to be attended by franchisees of the System that are in good standing. (Franchise Agreement, Article 4.B.);
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- Supplemental Training We may require that you and your Operating Manager participate in supplemental on-site training that we may designate and require in our discretion. If you are not meeting what we believe to be System performance standards, we may provide, in our discretion, supplemental training on-site within your Operating Territory. You will be required to pay our then current supplemental
training fee, which is currently $500, per on-site trainer, per day, plus travel expenses, meals and accommodation expenses incurred by us. (Franchise Agreement, Article 4.A.);
Source: Item 18 — PUBLIC FIGURES (FDD page 45)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Deer Solution franchise agreement outlines several obligations for franchisees related to marketing and brand standards, which would likely extend to situations involving a public figure. Deer Solution retains full discretion over marketing standards and the media used to promote the business. This means franchisees must adhere to the franchisor's guidelines regarding any advertising or promotional materials featuring a public figure. Franchisees are required to get approval from Deer Solution for any marketing media they intend to use. This approval process ensures that all marketing efforts align with the brand's standards and legal requirements, especially when involving a public figure.
Deer Solution may establish and update marketing standards that franchisees must follow. These standards could include specific guidelines for using a public figure's image or endorsement, ensuring compliance with advertising regulations and protecting the brand's reputation. The Brand Development Fund, which franchisees contribute to, may be used to develop advertising and marketing materials. However, Deer Solution is not obligated to ensure that the benefits from these materials are proportionate to each franchisee's contribution or that all franchisees directly benefit from them.
Franchisees are responsible for indemnifying Deer Solution and its affiliates from any losses, expenses, or claims arising from the operation of their franchise. This indemnification clause could be significant if a public figure's involvement leads to legal issues or disputes. Franchisees must also conspicuously identify themselves as the owner of a Deer Solution franchise in all dealings and place notices of independent ownership on all materials. This requirement ensures clarity in all communications and helps avoid any misrepresentation of the relationship between the franchisee and franchisor, especially in marketing efforts involving a public figure.