What is included in the calculation of Gross Sales for a Deer Solution business, and what is excluded?

According to Deer Solution's 2025 Franchise Disclosure Document, Gross Sales are defined as the total revenue a Deer Solution business generates, but with some specific deductions. This is a crucial figure because many of the franchisee's ongoing fees are calculated as a percentage of Gross Sales.

Specifically, the calculation of Gross Sales includes the total revenue derived by each Deer Solution Business. However, this total is then reduced by sales tax, discounts, allowances, and returns. This means that while the initial revenue counts towards Gross Sales, any money refunded or given as discounts is subtracted from the total.

For a prospective Deer Solution franchisee, understanding this definition is important for financial planning and calculating royalty and other fees. For example, the Royalty Fee is 8% of Gross Sales, the Brand Development Fund Fee is currently 2% of Gross Sales but may be increased to 3%, and the Sales and Support Center Fee is equal to 6.5% of Gross Sales but may be increased to 8.5% of Gross Sales. Knowing exactly what constitutes Gross Sales ensures accurate reporting and fee payment, and allows the franchisee to understand their true revenue.