When are Legal Fees and Expenses due for a Deer Solution franchisee?
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, Legal Fees and Expenses are due 'as incurred.' These fees encompass, but are not limited to, attorney's fees resulting from failure to pay amounts when due or any failure to comply with the Franchise Agreement. This means that a Deer Solution franchisee can expect to pay legal fees and expenses as they arise, particularly if they are not meeting their financial obligations or are otherwise in breach of the franchise agreement.
The 'as incurred' payment term is common in franchising for legal and non-compliance related fees. It means that Deer Solution franchisees should maintain diligent compliance with all aspects of the Franchise Agreement to avoid incurring these potentially significant costs. This includes ensuring timely payments and adherence to operational standards.
It is important to note that the FDD also lists other fees related to non-compliance, such as 'Reporting Non-Compliance' ($150 per occurrence, due 14 days of invoice) and 'Operations Non-Compliance' ($450 to $1,000 per occurrence, due 14 days of invoice). While these are distinct from Legal Fees and Expenses, they highlight the importance of adhering to the Franchise Agreement to avoid financial penalties. Furthermore, 'Payment Non-Compliance' incurs a fee of $150 per occurrence, in addition to interest, costs, and legal fees, emphasizing the potential for legal fees to accumulate if payments are not made on time.