What is included in 'Direct Labor Cost' for a Deer Solution franchise?

According to Deer Solution's 2025 Franchise Disclosure Document, Direct Labor Cost includes specific labor-related expenses. It encompasses the direct non-owner labor expenses incurred in the operations of the Outlet for employees that directly perform or provide services resulting in Gross Sales. This includes wages, payroll taxes, workers' compensation, and paid employee benefits, if any.

However, the Direct Labor Cost specifically excludes compensation related to administrative or management labor. It also does not include labor costs associated with providing estimates and the sales process. This distinction is important for franchisees to understand when budgeting and managing their labor expenses, as it clarifies which labor-related costs are included in this particular financial calculation.

Understanding what constitutes Direct Labor Cost is crucial for calculating the Direct Gross Profit, which is Gross Sales less Direct Cost of Goods Sold, Direct Labor Cost, and Service Vehicle Cost. Franchisees should carefully track these costs to accurately assess their financial performance and profitability. By excluding administrative and sales-related labor costs, Deer Solution aims to provide a clear picture of the labor expenses directly tied to service delivery.