What is the maximum weekly contribution a Deer Solution franchisee must make to the Brand Development Fund?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
As disclosed in Item 6 of this Disclosure Document, you must contribute a weekly sum not to exceed 3% of weekly Gross Sales to the Brand Development Fund.
We may use the Brand Development Fund for market studies, research, service development, product development, testing, research studies, technology development, advertising and public relations studies or services, creative production and printing of advertising and marketing materials, advertising copy and commercials, tracking costs, agency fees, administrative costs, which may include reimbursement for direct administrative and personnel costs associated with advertising and public relations, and any other costs associated with the development, marketing and testing of advertising, marketing and public relations materials, and the purchase of media placement, advertising time and public relations materials in national, regional or other advertising and public relations media in a manner determined by us, in our discretion, to be in the best interest of the franchisees and the System.
Our company and/or affiliate owned Deer Solution Businesses may but are not required to contribute to the Brand Development Fund.
The Brand Development Fund will be required to maintain unaudited financial records detailing its expenditures and will make available to you (no more frequently than one time in any 12 month period) an unaudited accounting of how the monies contributed to the Brand Development Fund were spent each year.
We are not required to segregate the Brand Development Fund from our general operating funds and we are not a fiduciary or trustee of the Brand Development Fund.
The Brand Development Fund will not be used to directly promote your Deer Solution Business or the marketing area in which your Deer Solution Business will be located. (Franchise Agreement, Article 9.A.).
We may utilize the Brand Development Fund to develop and test various media and technologies for potential utilization and/or improvement of the operations of Deer Solution Businesses and the marketing of Deer Solution Businesses.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 29–35)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, franchisees must contribute to the Brand Development Fund. The maximum weekly contribution is capped at 3% of the franchisee's weekly gross sales.
The Brand Development Fund is used for various marketing and development activities, including market studies, research, advertising, and public relations. These activities are intended to benefit the Deer Solution franchise system as a whole. The franchisor has the discretion to determine how the funds are spent, aiming to act in the best interest of the franchisees and the system.
Deer Solution or its affiliates may also contribute to the Brand Development Fund, but they are not required to do so. The fund maintains unaudited financial records, and franchisees can request an unaudited accounting of how the funds were spent, but no more than once per year. The franchisor is not obligated to segregate the Brand Development Fund from its general operating funds and is not considered a fiduciary or trustee of the fund.
It's important to note that the Brand Development Fund will not be used to directly promote an individual franchisee's Deer Solution business or its specific marketing area. The franchisor may use the fund to test new technologies and media that could potentially improve the operations and marketing of Deer Solution businesses. Currently, the Brand Development Fund is at 2% of Gross Sales.