Can Deer Solution increase the monthly software fee at any time?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
- (6) Software Fee Franchisee shall pay to Franchisor, Franchisor's affiliates, or Franchisor's designees a continuing monthly non-refundable software fee (the "Software Fee"). Franchisor reserves the right to increase the Software Fee at any time in the future. The Software Fee, as applicable and at Franchisor's election, may be pre-deducted by Franchisor from Gross Sales.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, franchisees are required to pay a continuing monthly non-refundable software fee. Deer Solution retains the right to increase this software fee at any time in the future. This fee may be pre-deducted from the franchisee's Gross Sales at Deer Solution's discretion.
This clause in the franchise agreement gives Deer Solution considerable flexibility in adjusting the software fee. While the FDD does not specify any limits on the amount or frequency of these increases, the franchisee should be aware that the monthly cost for software could change over time. It is important to note that the software fee is non-refundable, regardless of any changes to the fee structure.
Prospective franchisees should consider this potential for fee increases when evaluating the overall cost of operating a Deer Solution franchise. It would be prudent to discuss with Deer Solution the typical frequency and magnitude of past software fee adjustments, and what factors might drive future increases. Understanding these potential costs is essential for accurate financial planning.