What is included within the 'Advertising Contributions' for a Deer Solution franchise?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
At all times Franchisor, in Franchisor's Reasonable Business Judgment, possesses the right to authorize, establish, designate and de-authorize a local or regional advertising cooperative within those markets that Franchisor designates (the "Advertising Cooperative"). Franchisee agrees that Franchisor possesses the sole and exclusive right to designate any geographic area in which two or more Deer Solution Business franchises are located as a region for the purpose of establishing an Advertising Cooperative. If Franchisee's Deer Solution Business or Operating Territory is located within the geographic area of an Advertising Cooperative, franchisee must participate in and contribute to the Advertising Cooperative. Franchisee agrees to the following:
(1) If Franchisor previously instituted or, in the future, institutes an Advertising Cooperative that includes, in whole or in part, Franchisee's Operating Territory or Franchisee's Deer Solution Business Location, Franchisee shall participate in and make such on-going financial contributions to the Advertising Cooperative, as determined by the Advertising Cooperative;
(2) Franchisor may establish foundational and organizational requirements of the Advertising Cooperative including voting provisions that allows the Advertising Cooperative to make decisions based on the simple majority vote (one vote per franchisee Deer Solution Business located within the designated area of the Advertising Cooperative) with a quorum constituting 25% of those franchisees within the Advertising Cooperative;
(3) Unless otherwise authorized and approved by Franchisor in writing, each Advertising Cooperative shall be organized for the exclusive purpose of administering marketing programs and the development of media (all subject to the review and approval of Franchisor) for use by members of the Advertising Cooperative in local or regional marketing;
(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 the 2025 Deer Solution Franchise Disclosure Document, franchisees may be required to participate in and contribute to an Advertising Cooperative if one is established in their area. These Advertising Cooperatives are designated by Deer Solution, which has the sole right to determine the geographic areas they cover. If a franchisee's territory falls within an Advertising Cooperative's area, participation is mandatory.
The purpose of these Advertising Cooperatives is to administer marketing programs and develop media for local or regional marketing efforts, all subject to Deer Solution's review and approval. Franchisees are required to contribute financially to the Advertising Cooperative, with the specific amounts determined by the cooperative itself. However, these contributions will not exceed the franchisee's local minimum marketing obligations as outlined in the franchise agreement, and they count towards fulfilling those minimum local marketing requirements.
Franchisees must also provide statements and reports to both the Advertising Cooperative and Deer Solution as required. All funds collected by the Advertising Cooperative are to be used solely for the cooperative's stated purpose. It is important to note that Deer Solution businesses owned by the franchisor or its affiliates within the Advertising Cooperative's area are not required to contribute to the cooperative. The Advertising Cooperative must also adhere to the rules and regulations set forth by Deer Solution in its Operations Manual, which may be updated periodically.