What are the 'Management Service Fees' that Deer Solution charges when it appoints a manager?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor has the right to charge a Management Service Fee for such management services and may cease to provide management services at any time.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to the 2025 Deer Solution Franchise Disclosure Document, Deer Solution has the right to charge a 'Management Service Fee' when it appoints a manager to oversee a franchisee's business. This situation typically arises if the franchisee, or the managing owner of a corporate franchisee, dies or becomes permanently disabled and the business is not being managed by an approved manager within 30 days. Deer Solution is authorized, but not required, to appoint a manager to maintain operations. The franchisee is responsible for the costs associated with this manager.
Deer Solution's appointment of a manager does not relieve the franchisee of their obligations under the franchise agreement, nor does it waive Deer Solution's right to terminate the agreement. The franchisee remains responsible for all debts, losses, costs, and expenses incurred during the operations of their Deer Solution business, even while managed by Deer Solution's appointed manager. Deer Solution is not liable for these financial obligations.
The FDD states that Deer Solution has the right to cease providing management services at any time. For corporate entities, if the managing owner is the only owner and becomes deceased or permanently disabled, the same conditions apply as if the managing owner were the sole individual franchisee. The FDD specifies that the definition of 'Management Service Fees' is detailed in Articles 7.I. and 14.D. of the agreement. However, the specific amount or method of calculating this fee is not disclosed in the provided excerpts.