What do Legal Fees and Expenses cover under the Deer Solution franchise agreement?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
| Reporting Non-Compliance | $150 per occurrence | 14 days of invoice | Payable for failure to timely submit Royalty and Activity Reports, and other reports and financial statements as required under Franchise Agreement. |
|---|---|---|---|
| Operations Non-Compliance | $450 to $1,000 per occurrence | 14 days of invoice | Payable for failure to comply with operational standards as required and specified under Franchise Agreement, plus inspection and re- inspection costs incurred by us. |
| Payment Non-Compliance | $150 per occurrence | Payable for failure to timely pay, when due, a fee or payment due to us under the Franchise Agreement, plus interest, costs, and legal fees. | |
| Non-Compliance | Actual fees, costs, and expenses | On demand | Fees, costs, and expenses incurred by us as a result of your breach or non- compliance with the terms of your Franchise Agreement. |
| Legal Fees and Expenses | Costs and expenses | As incurred | This fee includes, but is not limited to, attorneys’ fees for any failure to pay amounts when due or failure to comply in any way with the Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 14–19)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, franchisees may incur legal fees and expenses. These fees cover costs and expenses, including attorneys’ fees, resulting from any failure to pay amounts when due or any failure to comply with the Franchise Agreement. These fees are payable as incurred, meaning Deer Solution can demand payment for these legal costs as they arise.
This means that if a Deer Solution franchisee breaches the franchise agreement, whether through late payments or other non-compliance, they will be responsible for covering Deer Solution's legal costs associated with addressing the breach. This could include the cost of attorneys, court fees, and other related expenses.
Franchisees should be aware that these legal fees and expenses can potentially be significant, especially if a dispute escalates into litigation. It is crucial for franchisees to adhere to the terms of the franchise agreement and ensure timely payments to avoid incurring these additional costs. Understanding the full scope of potential legal liabilities is a key aspect of assessing the financial risks associated with investing in a Deer Solution franchise.